The Optimal Capital Structure Has Been Achieved When The

question 56

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 is equal to 1.
• C)debt-equity ratio selected results in the lowest possible weighted average cost of capital.
• D)debt-equity ratio is such that the cost of debt exceeds the cost of equity.
• E)cost of equity is maximized given a pre-tax cost of debt.

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Definitions:

Child Abuse

Any action by another person – adult or child – that causes significant harm to a child, including physical, emotional, sexual abuse, or neglect.

Cultural Factors

Elements that influence behaviors, beliefs, and practices, which are derived from social norms, traditions, and values of a culture.

Child Protective Services

Government agencies tasked with responding to reports of child abuse or neglect and providing services to protect and support affected children.

Confidentiality

The principle of keeping certain information private and not disclosing it without the consent of the person it pertains to.