Which one of the following statements is correct? To maximize the value of a fir

Question

Which one of the following statements is correct?

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

A Chapter 7 bankruptcy is a legal process for reorganizing a firm.

Investors can use homemade leverage to offset firm leverage.

To maximize the value of a firm you need to borrow as much as you can.

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

A Chapter 7 bankruptcy is a legal process for reorganizing a firm.

Investors can use homemade leverage to offset firm leverage.

To maximize the value of a firm you need to borrow as much as you can.

Explanation / Answer

Investors can use homemade leverage to offset firm leverage.

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