As a General Rule, the Optimal Capital Structure

question 105

Multiple Choice

As a general rule, the optimal capital structure

• A) maximizes expected EPS and also maximizes the price per share of common stock.
• B) minimizes the interest rate on debt and also maximizes the expected EPS.
• C) minimizes the required rate on equity and also maximizes the stock price.
• D) maximizes the price per share of common stock and also minimizes the weighted average cost of capital.

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Definitions:

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The process of dividing a market into segments based on consumer personalities, values, attitudes, interests, or lifestyles.

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A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy.

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