Which Statement Best Describes the Optimal Capital Structure

question 37

Multiple Choice

Which statement best describes the optimal capital structure?

• A)The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company's earnings per share (EPS).
• B)The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company's stock price.
• C)The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company's cost of equity.
• D)The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company's cost of debt.

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Definitions:

Deferred Imitation

The imitation of people and events that were encountered or experienced hours, days, or weeks in the past.

A Not B Error

A phenomenon seen in infant cognitive development where babies will repeatedly search for an object where they first found it, even after seeing it moved to a new location.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed; typically develops in the first few years of life.

Symbolic Thought

The ability to use symbols, words, or objects to represent something that is not physically present, foundational for language and imaginative play.