Which of the following statements is most correct? A. The optimal debt level for a...
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Finance
Which of the following statements is most correct?
A. The optimal debt level for a firm will maximize the firms earnings per share.
B. The optimal debt ratio will maximize the firm's stock price and minimize the firm's cost of capital.
C. If a mature firm sells stock to fund a new project, it is signaling to the public that it is very optimistic about the project.
D. The pecking order hypothesis says that the first source of funds that a firm should use is retained earnings.
E. A company that uses robotics (hence, has high fixed costs for machinery) will have a lower degree of operating leverage than a company that makes its units using labor (rather than machines).
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