The Optimal Capital Structure Has Been Achieved When The

question 1

Multiple Choice

The optimal capital structure has been achieved when the:

• A) debt-equity ratio is equal to 1.
• B) weight of equity is equal to the weight of debt.
• C) cost of equity is maximized given a pre-tax cost of debt.
• D) debt-equity ratio selected results in the lowest possible weighed average cost of capital.

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Definitions:

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The levels of specific substances present in the serum component of the blood, important for diagnosing and monitoring diseases.

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A chemical element used in the treatment of bipolar disorder to manage episodes of mania or depression.

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A chronic condition in which the heart is unable to pump sufficiently to maintain blood flow to meet the body's needs.

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A chemical element used as medication to treat mood disorders, including bipolar disorder.