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Which of the following statements is CORRECT? a . If a firm finds that the cost of debt is less than the cost of equity,
Which of the following statements is CORRECT?
a If a firm finds that the cost of debt is less than the cost of equity, increasing its debt ratio must reduce its WACC.
b The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share.
c The capital structure that minimizes a firm's weighted average cost of capital is also the capital structure that maximizes its stock price. just tell me what it means and the logic to find the answer
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