Which of the Following Would Be Considered the Firm's Optimal

question 57

Multiple Choice

Which of the following would be considered the firm's optimal capital structure?

• A) Stock Price = $25, Earnings Per Share = $10, Cost of Equity Capital = 15%
• B) Stock Price = $23, Earnings Per Share = $11, Cost of Equity Capital = 18%
• C) Stock Price = $24, Earnings Per Share = $12, Cost of Equity Capital = 17%
• D) Stock Price = $20, Earnings Per Share = $12, Cost of Equity Capital = 20%

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