The Firm's Target Capital Structure Should Do Which of the Following

question 56

Multiple Choice

The firm's target capital structure should do which of the following?

• A) Maximize the earnings per share (EPS).
• B) Minimize the cost of debt (rd).
• C) Obtain the highest possible bond rating.
• D) Minimize the cost of equity (rs).
• E) Minimize the weighted average cost of capital (WACC).

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Definitions:

Vascular Tissues

Plant tissues responsible for transporting water, nutrients, and sugars throughout the plant.

Mosses

A phylum of spore-producing nonvascular plants with an alternation of generations in which the dominant n gametophyte alternates with a 2n sporophyte that remains attached to the gametophyte.

Liverworts

Simple, non-vascular plants, similar to mosses, that proliferate in moist, shaded environments and are among the earliest terrestrial plants.

Sporangium

A structure in fungi and plants where spores are produced and stored.