A Company's Optimal Capital Structure Occurs When

question 67

Multiple Choice

A company's optimal capital structure occurs when

• A) ROA is maximized.
• B) the company assets are funded by 50% debt and 50% equity.
• C) the company can borrow at a rate lower than its ROA.
• D) ROE is maximized.

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Positive Reinforcement

A stimulus that, when presented after a behavior, increases the likelihood of that behavior occurring in the future.

Leadership

The ability to guide, influence, or direct individuals or groups to achieve goals with competence and commitment.

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