Which of the following statements is correct?

		Increasing a companys debt ratio will typically reduce the marginal costs of both debt and equity financing; however, this still may raise the companys WACC.
		The capital structure that maximizes the common share price is also the capital structure that maximizes earnings per share.
		Increasing personal tax rate but decreasing corporate tax rate would encourage companies to increase their debt ratios.
		The capital structure that maximizes the common share price is also the capital structure that minimizes the WACC.