Which of the Following Statements best Describes the Optimal Capital

question 39

Multiple Choice

Which of the following statements best describes the optimal capital structure?

• A) The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company's earnings per share (EPS).
• B) The optimal capital structure is the mix of debt, equity, and
• Preferred stock that maximizes the company's stock price.
• C) The optimal capital structure is the mix of debt, equity, and
• Preferred stock that minimizes the company's cost of equity.
• D) The optimal capital structure is the mix of debt, equity, and
• Preferred stock that minimizes the company's cost of debt.
• E) The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company's cost of preferred stock.

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