The Firm's Target Capital Structure Should Be Consistent with Which

question 15

Multiple Choice

The firm's target capital structure should be consistent with which of the following statements?

• A) Minimize the cost of debt (r_d).
• B) Obtain the highest possible bond rating.
• C) Minimize the cost of equity (r_s).
• D) Minimize the weighted average cost of capital (WACC).
• E) Maximize the earnings per share (EPS).