The Optimal Capital Structure Has Been Achieved When the

question 43

Multiple Choice

The optimal capital structure has been achieved when the

• A)weight of equity is equal to the weight of debt.
• B)debt-equity ratio selected results in the lowest possible weighted average cost of capital.
• C)firm is totally financed with debt.
• D)debt-equity ratio is such that the cost of debt exceeds the cost of equity.
• E)cost of equity is maximized.

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