Which of the following statements is CORRECT?
A. The capital structure that maximizes expected EPS also maximizes the price per share of common stock.
B. The capital structure that minimizes the interest rate on debt also maximizes the expected EPS.
C. The capital structure that minimizes the required return on equity also maximizes the stock price.
D. The capital structure that minimizes the WACC also maximizes the price per share of common stock.
E. The capital structure that gives the firm the best bond rating also maximizes the stock price.
Answer: D
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Synchronous manufacturing systems
A. is also called the theory of constraints. B. is a balanced system while a JIT system is unbalanced. C. takes longer to install than a JIT system, but production capacities are larger. D. is faster than a JIT system because no allowances are made for contingencies.
State the purpose of an IT security audit and briefly discuss the key elements of such an audit
Brooks Corporation distributes property with a basis of $20,000 and a fair market value of $25,000 to Caroline in complete liquidation of the corporation. Caroline's basis in the stock is $32,000 . What must Caroline and Brooks report as income (loss) upon the liquidation of Brooks?
Caroline Brooks a. $(12,000) $(7,000) b. $(12,000) $5,000 c. $(12,000) $-0- d. $(7,000) $5,000
Adaptability is not a desirable feature in financial plans.
Answer the following statement true (T) or false (F)