The Ideal Capital Structure

Multiple Choice

The ideal capital structure:

A) Is that combination of debt and equity which results in a debt-equity ratio of 1.0.
B) Is that combination of debt and equity which yields the highest level of sales growth.
C) Is that of an unlevered firm.
D) Produces the lowest weighted average cost of capital.
E) Is generally unobtainable as it exists only in a firm financed solely with debt.