Which of the following statements is correct?

a. the capital structure that maximizes the stock price is also the capital structure that maximizes earnings per share.
b. the capital structure that maximizes the stock price is also the capital structure that maximizes the firm's times interest earned (tie) ratio.
c. increasing a company's debt ratio will typically reduce the marginal costs of both debt and equity financing; however, this still may raise the company's wacc.
d. if congress were to pass legislation that increases the personal tax rate but decreases the corporate tax rate, this would encourage companies to increase their debt ratios.
e. the capital structure that maximizes the stock price is also the capital structure that minimizes the weighted average cost of capital (wacc).

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale. required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse. b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this. c. explain the difference between sale of receivables with recourse as oppose to without recourse.

How has apple been able to sustain its competitive advantage in the smartphone industry? a. by reducing its network effects b. by targeting its new products and services toward laggards c. by driving the price for the end user to zero d. by regularly introducing incremental improvements in its products

Adecision is made at the margin when each alternative considers