Multiple Choice
What is optimal capital structure?
A) It is the mix of debt, preferred stock, and common equity that maximizes profits.
B) It is the mix of debt, preferred stock, and common equity that minimizes risk.
C) It is the mix of debt, preferred stock, and common equity that minimizes the weighted cost to the firm of its employed capital.
D) It is the mix of common and preferred stock that maximizes dividends to the stockholders.
Correct Answer:
Verified
Correct Answer:
Verified
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