Which of the following statements is true a the

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22. Which of the following statements is true? a. The Principle of Capital Market Efficiency says to recognize that the potential to increase firm value through capital structure is smaller than the potential to increase firm value through the introduction of valuable new ideas and wise use of the firm's comparative advantages. b. The Behavioral Principle states to look to the information contained in the capital structure decisions and financing transactions of other firms for guidance in choosing a capital structure. c. The Signaling Principle says to consider any possible change in capital structure carefully, because financing transactions and capital structure changes convey information to outsiders and can be misunderstood. d. all of these b 23. Which of the following statements is true? increase firm value through capital structure is smaller than the potential to increase firm value through the introduction of valuable new ideas and wise use of the firm's comparative advantages. structure decisions and financing transactions of other firms for guidance in choosing a capital structure. capital structure carefully, because financing transactions and capital structure changes convey information to outsiders and can be misunderstood. a 24. Which of the following statements is true? minimize the value lost to capital market imperfections, such as asymmetric taxes, asymmetric information, and transaction costs. issuing securities that are in short supply, perhaps resulting from changes in tax law. benefits from capital structure choices. a 25. Which of the following represents the perfect capital market view of capital structure? of capital, not on how those cash flows are divided between the debtholders and the shareholders. d
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