The Optimal Capital Structure of a fiRm Maximizes the Value

question 152

Multiple Choice

The optimal capital structure of a firm maximizes the value of the firm while:

• A) Maximizing the interest tax shield.
• B) Minimizing the firm's cost of capital.
• C) Equating the level of debt to the level of equity.
• D) Minimizing the debt-equity ratio.
• E) Minimizing the financial distress costs.

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