Statements concerning capital structure weights

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Which one of the following statements is correct concerning capital structure weights?

A. Capital structure weights are constant over time.

B. A new bond issue will not affect the weight of the firm's preferred stock.

C. An increase in the debt-equity ratio will increase the weight of the common stock.

D. The repurchase of preferred stock will not affect the weight of the debt.

E. The issuance of additional shares of common stock will decrease the weight of the preferred stock.

Reference no: EM13136235

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