As a General Rule, the Capital Structure That

question 9

Multiple Choice

As a general rule, the capital structure that

• A) Maximises expected EPS also maximises the price per share of ordinary shares.
• B) Minimises the interest rate on debt also maximises the expected EPS.
• C) Minimises the required rate on equity also maximises the share price.
• D) Maximises the price per share of ordinary shares also minimises the weighted average cost of capital.
• E) None of the above.

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