As a general rule, the optimal capital structure is the one that:

A. maximizes both the firm's expected EPS and its stock price.
B. minimizes the interest rate on its debt and maximizes its expected earnings per share.
C. minimizes its required rate on equity and maximizes its stock price.
D. maximizes its stock price and minimizes its weighted average cost of capital.
E. minimizes its expected earnings per share and maximizes its weighted average cost of capital.


Answer: D

Business

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On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions:The credits to the Work in Process account as a consequence of the raw materials transactions in November total:

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Indicate whether the statement is true or false

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Answer the following statement true (T) or false (F)

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