All of the following statements are correct except:

Group of answer choices

The firms optimum debt/equity mix minimizes the firms cost of capital, which in turn helps the firm to maximize shareholder wealth

A projects NPV represents the increase in shareholders wealth from undertaking a project; thus, a lower weighted average cost of capital gives higher project net present values and results in higher levels of shareholder wealth

As a general rule, the capital structure that maximizes stock price also minimizes the required rate of return on equity.

A firms mix of debt and equity used to finance its assets defines the firms capital structure