The Ideal Capital Structure

question 74

Multiple Choice

The ideal capital structure:

• A) Is that combination of debt and equity which results in a debt-equity ratio of 1.0.
• B) Is that combination of debt and equity which yields the highest level of sales growth.
• C) Is that of an unlevered firm.
• D) Produces the lowest weighted average cost of capital.
• E) Is generally unobtainable as it exists only in a firm financed solely with debt.

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Definitions:

Freud

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