Which of the following are practical difficulties associated with capital structure and degree of leverage analyses?
a. It is nearly impossible to determine exactly how P/E ratios or equity capitalization rates (rs values) are affected by different degrees of financial leverage.
b. Managers' attitudes toward risk differ and some managers may set a target capital structure other than the one that would maximize stock price.
c. Managers often have a responsibility to provide continuous service; they must preserve the long-run viability of the enterprise. Thus, the goal of employing leverage to maximize short-run stock price and minimize capital cost may conflict with long-run viability.
d. All of the above.
e. None of the above represent a serious impediment to the practical application of leverage analysis to capital structure determination.