The fiNancial Management Goal as It Pertains to the Capital

Multiple Choice

The financial management goal as it pertains to the capital structure of a firm is to operate at the point where the debt-equity mix:

A) Creates the largest tax shield for the firm.
B) Maximizes the financial distress costs.
C) Maximizes the value of the firm.
D) Minimizes the potential bankruptcy costs.
E) Minimizes the yield-to-maturity on debt.