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Business, 27.08.2019 23:30 goodluck99

Which of the following statements is correct? a. the capital structure that maximizes the stock price is generally the capital structure that alsomaximizes earnings per share.*b. all else equal, an increase in the corporate tax rate would tend to encourage a company to increaseits debt ratio.*c. since debt financing raises the firm's financial risk, increasing a company's debt ratio will alwaysincrease its wacc. d. since debt is cheaper than equity, increasing a company's debt ratio will always reduce its wacc. e. when a company increases its debt ratio, the costs of equity and debt both increase. therefore, the wacc must also increase.

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Which of the following statements is correct? a. the capital structure that maximizes the stock pric...
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