Question: MENTION TRUE OR FALSE AND CORRECT IT IF FALSE 5. The target capital structure is the desired optimal mix of debt and equity financing that

MENTION TRUE OR FALSE AND CORRECT IT IF FALSE

5. The target capital structure is the desired optimal mix of debt and equity financing that most firms attempt to achieve and maintain.

6. The cost of capital is a static concept and it is not affected by economic and firm-specific factors such as business risk and financial risk.

7. The purchase of additional inventory, is an example of a capital expenditure.

8. Independent projects are projects that compete with one another for a firm's resources, so that the acceptance of one eliminates the others from further consideration.

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