The Firm's Target Capital Structure Should Be Consistent with Which

question 54

Multiple Choice

The firm's target capital structure should be consistent with which of the following statements?

• A) minimize the cost of debt (rd).
• B) obtain the highest possible bond rating.
• C) minimize the cost of equity (rs).
• D) minimize the weighted average cost of capital (wacc).
• E) maximize the earnings per share (eps).

---

Definitions:

Anticommunist Forces

Individuals or groups that oppose communism, often advocating for or engaging in political or military action against communist movements or governments.

Soviet-backed Governments

Soviet-backed governments were administrations in various countries during the Cold War that received political, military, and economic support from the Soviet Union to establish or maintain communist regimes.

Economic Necessity

A situation where financial considerations compel a particular course of action, indicating that certain decisions are driven by economic rather than preferential factors.

Employment Opportunities

Available jobs or positions in the labor market that individuals can apply for in order to earn income.