The Value of a Firm at Optimum Capital Structure Is

question 177

Multiple Choice

The value of a firm at optimum capital structure is computed as ________.

• A) earnings before interest and taxes times one less tax rate divided by one plus weighted average cost of capital
• B) earnings before interest and taxes times one less tax rate divided by weighted average cost of capital
• C) operating cash flow divided by weighted average cost of capital
• D) operating cash flow divided by one plus weighted average cost of capital

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