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    Financial Accounting A User Perspective
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    Exam 12: Financial Statement Analysis
  5. Question
    A Company's Optimal Capital Structure Occurs When
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A Company's Optimal Capital Structure Occurs When

Question 12

Question 12

Multiple Choice

A company's optimal capital structure occurs when:


A) ROA is maximized.
B) the company assets are funded by 50% debt and 50% equity.
C) the company can borrow at a rate lower than its ROA.
D) the ROE is maximized.

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