At the Optimal Debt-To-Equity Ratio,the Cost of Capital (WACC)is ________

question 34

Multiple Choice

At the optimal debt-to-equity ratio,the cost of capital (WACC) is ________ for the firm.This point reflects the maximum benefit of leverage.

• A)the lowest
• B)the highest
• C)at the midpoint
• D)irrelevant

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Definitions:

Mammal Species

Diverse groups within the class Mammalia, characterized by having warm-blood, fur or hair, and, in females, milk-producing mammary glands.

Tail Feathers

The feathers located at the end of a bird’s body, which are often used for steering and balance during flight.

Female Birds

The sex in birds that typically produces larger, non-motile gametes (eggs), and often, but not always, has different physical characteristics from males.