If a Firm Is Operating at Its Optimal Capital Structure

question 59

Multiple Choice

If a firm is operating at its optimal capital structure, then its weighted average cost of capital must be __________ and its value must be __________.

• A) maximised; maximised
• B) minimised; minimised
• C) maximised; minimised
• D) minimised; maximised
• E) None of the above is a correct answer.

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Definitions:

Genetic Map

A genetic map is a representation of the order and approximate distances between genes or other DNA sequences on a chromosome, valuable for understanding genetic linkage and inheritance patterns.

Dominant Gene

An allele that expresses its phenotypic effect even when heterozygous with a recessive allele, determining the characteristic it codes for.

Recessive Gene

A gene that must be present on both chromosomes in a pair to express a recessive trait, unlike a dominant gene where only one is necessary for the trait to be expressed.

Cystic Fibrosis

A genetic disorder that affects the lungs and digestive system, characterized by thick, sticky mucus that can clog airways and trap bacteria.