Which of the following statements regarding the capital structure is CORRECT? Group of answer choices: According to the M&M theory under perfect market assumptions, the value of a firm with no debt is...

Which of the following statements regarding the capital structure is CORRECT?

Group of answer choices:

According to the M&M theory under perfect market assumptions, the value of a firm with no debt is the same as that with 100% debt.

A firm's optimal capital structure is one that maximizes both its expected EPS and stock price.

The pecking order model predicts that the equity financing is more preferred to debt financing.

According to the M&M theory, if only corporate taxes are considered, the optimal capital structure is one with 0% debt financing.

According to the static tradeoff model, a firm's optimal capital structure can be obtained by considering the debt-related costs only.

Jun 08, 2022

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