1 which of the following statments is correcta to maximize, Ask an Expert

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1. Which of the following statments is correct?

a. to maximize the value of a firm you need to maximize the firm's WACC.

b. A chapter 7 bankruptcy is a legal process for reorganizing a firm.

c. investors cannot use homemade leverage to offset firm leverage.

d. to maximize the value of a firm you need to maxi mize shareholder of wealth by optimizing capital structure and others

2. Different borrowers have different risks of bankruptcy, and bankruptcy is costly to lenders. therefor, lenders charge higher rates to borrowers judged to be more at risk of going bankrupt.

true

false

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Financial Management, Finance

Category:- Financial Management
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