Optimal Capital Structure Is

question 125

Multiple Choice

Optimal capital structure is

• A) the mix of permanent sources of funds used by the firm in a manner that will maximize the company's common stock price.
• B) the mix of all items that appear on the right-hand side of the company's balance sheet.
• C) the mix of funds that will minimize the firm's cost of equity capital.
• D) the mix of funds that will maximize the firm's interest tax shield.

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