The Optimal Capital Structure Does Not Necessarily Minimize the Cost

question 19

True/False

The optimal capital structure does not necessarily minimize the cost of equity.

---

Definitions:

Humerus

The long bone in the upper arm or forelimb, extending from the shoulder to the elbow.

Cartilaginous Skeleton

A type of anatomical structure where the skeleton is made entirely of cartilage, as seen in sharks and rays.

Sharks

Predatory fish known for their strength, efficiency as hunters, and, in many species, a cartilaginous skeleton.

Embryonic Skeleton

The initial cartilaginous and fibrous structure that will develop into the bony skeleton of an organism during its embryonic phase.