The ________ Approach to Capital Structure Proposes That an Optimal

question 199

Multiple Choice

The ________ approach to capital structure proposes that an optimal capital structure be selected which ________.

• A) M and M; maximizes the weighted average cost of capital
• B) traditional; minimizes the cost of debt
• C) EBIT-EPS; maximizes the EPS
• D) residual theory; minimizes dividends

---

Definitions:

Capillaries

The smallest blood vessels in the body, which facilitate the exchange of oxygen, carbon dioxide, and other nutrients and wastes between the blood and tissues.

Blood

The circulatory fluid that supplies oxygen and nutrients to the cells and carries away carbon dioxide and other waste products.

Cardiorespiratory Fitness

A measure of the efficiency of the heart, lungs, and vascular system in delivering oxygen to the body during sustained physical activity.

Adenosine Triphosphate

A high-energy molecule found in the cells of all living things, serving as a primary energy carrier.