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NEW QUESTION: 1
As a general rule, the capital structure that
A. Minimizes the interest rate on debt also maximizes the expected EPS.
B. Minimizes the required rate on equity also maximizes the stock price.
C. Maximizes expected EPS also maximize the price per share of common stock.
D. None of these are correct.
E. Maximizes the price per share of common stock also minimizes the weighted average cost of capital.
Answer: E
Explanation:
Explanation/Reference:
Explanation:
The optimal capital structure is the one that maximizes the price of the firm's stock, and this generally calls for a debt ratio which is lower than the one that maximizes expected EPS.
NEW QUESTION: 2
A. Option A
B. Option B
C. Option C
D. Option D
E. Option E
Answer: A,B
NEW QUESTION: 3
Ein IS-Prüfer hat die Sicherheitsrichtlinien eines Lohn- und Gehaltsabrechnungsdienstleisters bewertet und stellt fest, dass wichtige Themen fehlen.
Welche der folgenden Vorgehensweisen ist die BESTE des Abschlussprüfers?
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C. Melden Sie das Risiko dem internen Management
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Answer: C
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