32. T/F The highest EPS numbers will always produce the lowest WACC figure to maximize stock price 33. The new firm wants to minimize fixed costs. What does this mean? a. This will keep operating leverage down which in turn will lower business risk b. This will lower financial risk which in turn lowers the risk of the firm. c. Higher fixed costs will leverage up returns and lower business risk d. Higher operating leverage is directly associated with higher financial risk. 34. T/F The goal of a firm is to maximize the value of its stock and that occurs at the point where the WACC is the highest 35. T/F Capital structure refers to the % of equity and the % of debt affirm has with the goal of minimizing that cost or finding the lowest WACC. 36. T/F Essentially, the whole idea of valuing stocks and bonds and deciding whether or not to accept or reject capital investments (machines, a truck fleet, etc.) is to compute the present value of the cash flows. 37. If a firm wants to issue debt to buy back stock what may happen: a. EPS will go down and the WACC may rise as more debt is issued b. EPS will go up and the WACC may rise as more debt is issued c. EPS will remain the same and the WACC will stay the same