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NEW QUESTION: 1
Which of the following statements is most correct?
A. The capital structure which minimizes the firm's cost of capital is also the capital structure which maximizes the firm's earnings per share.
B. If a firm finds that the cost of debt financing is currently less than the cost of equity financing, an increase in its debt ratio will always reduce its cost of capital.
C. The capital structure which minimizes the firm's cost of capital is also the capital structure which maximizes the firm's stock price.
D. None of these statements are correct.
E. A firm can use retained earnings without paying a flotation cost. Therefore, while the cost of retained earnings is not zero, the cost of retained earnings is generally lower than the after-tax cost of debt financing.
Answer: C
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 maximized expected EPS.
NEW QUESTION: 2
For which two purposes would RADIUS Attribute Policies be used? (Choose two.)
A. to designate with which wireless SSID a user can be associated
B. to configure QoS functions on a switch port for a user based on the current user's role
C. to specify which VLAN an endpoint must use to access the network
D. to specify against which realm a user authenticates
Answer: B,C
NEW QUESTION: 3
Which of the following controls BEST helps to ensure that transaction data reaches its destination?
A. Digitally signing individual messages
B. Encrypting data-in-transit
C. Providing acknowledgments from receiver to sender
D. Securing the network from attacks
Answer: C
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