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NEW QUESTION: 1
Which of the following statements is most correct?
A. 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.
B. The capital structure which minimizes the firm's cost of capital is also the capital structure which maximizes the firm's stock price.
C. The capital structure which minimizes the firm's cost of capital is also the capital structure which maximizes the firm's earnings per share.
D. 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.
E. None of these statements are correct.
Answer: B
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 specify which VLAN an endpoint must use to access the network
B. to configure QoS functions on a switch port for a user based on the current user's role
C. to specify against which realm a user authenticates
D. to designate with which wireless SSID a user can be associated
Answer: A,B
NEW QUESTION: 3
Which of the following controls BEST helps to ensure that transaction data reaches its destination?
A. Securing the network from attacks
B. Digitally signing individual messages
C. Providing acknowledgments from receiver to sender
D. Encrypting data-in-transit
Answer: C
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