Which of the Following Statements Is Most Correct

Which of the following statements is most correct?

A) One of the advantages of financing with stock is that a greater proportion of stock in the capital structure can reduce the risk of a takeover bid.
B) A firm with classified stock can pay different dividends to each class of shares.
C) One of the advantages of financing with stock is that a firm's debt ratio will decrease.
D) Both statements b and c are correct.
E) All of the statements above are correct.

Correct Answer:

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