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When the firm is at its optimal capital structure, WACCcomp is minimized. If so, other numbers in the WACC brackets are also minimized, and the

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"When the firm is at its optimal capital structure, WACCcomp is minimized. If so, other numbers in the WACC brackets are also minimized, and the NPV of the project is maximized." True or false? Select one O a False O b. True "If a firm lowers its debt ratio, holding the assets constant, its component costs of capital (for example, cost of debt and cost of equity) are also lowered As a consequence, the WACCcomp msut also be lowered." True or false? un Select one a False b. True "The announcement of a debt offering is generally taken as a signal that the firm's prospects as seen by its own management are good." True or false? Select one: O a. True b. False "Holding other factors constant, a higher debt ratio always results in a higher expected EPS as well as the standard deviation of EPS." True or false? f Select one: a. True stion Ob False "Holding other factors constant, an increase in operating leverage raises both the expected EBIT and the standard deviation of EBIT." True or false? Select one: O a False O b. True "If the market price of an asset is lower than its expected price, the asset is overpriced and represents a negative-NPV investment." True or false? Select one: a False b. True

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