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Business, 13.03.2020 03:37 quise2ross

A senior manager argues that it is in the best interest of the shareholders to choose the capital structure that leads to the highest expected return for the stock. How would you respond to this argument? (Select the best choice below.) A. True, because the manager's argument is correct. B. True, because this will result in a higher market value for the stock. C. False, because returns are higher because risk is higher and the return fairly compensates for the risk. D. True, because this would also lead to the highest earnings per share.

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