Multiple Choice
When choosing a capital structure, the objective of the firm should be to:
A) Choose the one that maximizes the current value of the firm's bonds.
B) Choose the one that minimizes the value of the firm.
C) Choose the one that minimizes the firm's WACC.
D) Choose the one that results in the largest interest tax shield.
E) Choose any capital structure since it is always irrelevant.
Correct Answer:
Verified
Correct Answer:
Verified
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