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Which of the Following Statements Is CORRECT

Question 13

Multiple Choice

Which of the following statements is CORRECT?


A) As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected EPS.
B) The optimal capital structure simultaneously maximizes EPS and Minimizes the WACC.
C) The optimal capital structure minimizes the cost of equity, which
Is a necessary condition for maximizing the stock price.
D) The optimal capital structure simultaneously minimizes the cost of
Debt, the cost of equity, and the WACC.
E) The optimal capital structure simultaneously maximizes stock price
And minimizes the WACC.

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