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.

---

Definitions:

Competitive

Characterized by or involving competition; striving to gain or win something by defeating or establishing superiority over others.

Cooperative

An approach in negotiations characterized by mutual assistance, joint effort, and teamwork to achieve a common goal.

Altered Information Tactic

A negotiation strategy involving the deliberate modification or distortion of information to influence the perceptions or decisions of the other party.

Detect Deception

The ability or methods used to identify instances of deceit or falsehoods in communication or behavior.