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As a general rule, the capital structure that: minimizes the cost of equity also

ID: 2635621 • Letter: A

Question

As a general rule, the capital structure that:

minimizes the cost of equity also maximizes the stock price.

maximizes the stock price also minimizes the weighted average cost of capital.

minimizes the cost of debt also maximizes the expected earnings per share.

none of the above is a true statement.

minimizes the cost of equity also maximizes the stock price.

maximizes the stock price also minimizes the weighted average cost of capital.

minimizes the cost of debt also maximizes the expected earnings per share.

none of the above is a true statement.

Explanation / Answer

none of the above is a true statement.

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