Which of the following isnotcorrect concerning a firm's capital structure policy?

Select one:

a. Manger's can affect a firm's value by changing the firm's capital structure.

b. The required rate of return on equity capital increases as the firm's use of debt increases.

c. A firm with high financial leverage is one which uses a large amount of debt relative to its equity.

d. Capital structure is the mix of debt and equity funding used by a firm.

e. The managers of a very strong and profitable company should aspire to pay off all of the firm's debts.