The Objective of Capital Structure Management Is to Find the Capital

question 42

Multiple Choice

The objective of capital structure management is to find the capital mix that leads to ____.

• A) maximization of earnings per share
• B) shareholder wealth maximization
• C) maximization of net income
• D) maximization of the current period's dividends

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Definitions:

Accrued Expenses

Expenses that have been incurred but not yet paid or recorded by the end of the accounting period.

Adjusting Entry

An accounting entry made at the end of an accounting period to record earnings or expenses that have occurred but are not yet entered in the accounts.

Asset Account

An account that shows the value of the assets a company controls, which can include cash, equipment, and real estate.

Accrued Interest

Interest that has been incurred but not yet paid, often related to bonds or loans.