The Optimal Capital Structure Has Been Achieved When The

question 49

Multiple Choice

The optimal capital structure has been achieved when the:

• A)debt-equity ratio is equal to 1.
• B)weight of equity is equal to the weight of debt.
• C)cost of equity is maximized given a pretax cost of debt.
• D)debt-equity ratio is such that the cost of debt exceeds the cost of equity.
• E)present value of the financial distress costs equals the present value of the tax shield on debt.

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Definitions:

Motivational CQ

The drive or interest an individual has in understanding cultural differences and adapting to various cultural settings.

Self-efficacy

An individual's belief in their own ability to succeed in specific situations or accomplish a task.

Cultural Intelligence

is the ability to relate to and work effectively across cultures, demonstrating an understanding of and respect for cultural differences.

Social Power Distance

The extent to which individuals or societies accept and expect unequal distribution of power and authority.