Question 1 1 pts Which of the following statements is CORRECT? O If a firm's after-tax cost of equity exceeds its after-tax cost of debt, it can always reduce its WACC by increasing its use of debt as much as possible. O All else equal, a firm with lower operating leverage also has a smaller proportion of its total costs in the form of fixed costs, and hence lower business risk. O A firm with a relatively high business risk is more likely to increase its use of debt than a firm with low business risk, all else equal. O A firm maximizes its EPS while at its optimal capital structure. Next