To make its stock more affordable to investors by lowering its share price, New Way, Inc. is considering to do a ________________ shortly.

a. special dividend

b. stock dividend

c. reverse stock split

d. stock split

e. liquidating dividend

Which of the following statement is correct?

a. A company's weighted average cost of capital (WACC) is unaffected by changes in corporate tax rates.

b. A company's weighted average cost of capital (WACC) remains constant when the debt-equity ratio changes.

c. A company's weighted average cost of capital (WACC) is the return investors require on the total assets of the firm.

d. A company's weighted average cost of capital (WACC) is equivalent to the aftertax cost of the outstanding liabilities.

e. A company's weighted average cost of capital (WACC) should be used as the required return when analyzing any new project.