Multiple Choice
As a general rule, the optimal capital structure is the one that:
A) maximizes expected EPS and the price per share of common stock.
B) minimizes the interest rate on debt and maximizes the expected earnings per share.
C) minimizes the required rate on equity and maximizes the stock price.
D) maximizes the price per share of common stock and minimizes the weighted average cost of capital.
E) minimizes the expected earnings per share and maximizes the weighted average cost of capital.
Correct Answer:

Verified
Correct Answer:
Verified
Q47: If a firm uses no debt,the uncertainty
Q66: If a firm with favorable prospects sells
Q67: With which of the followingis a firm's
Q68: A degree of operating leverage of 1.5
Q69: The fact that interest is tax-deductible makes
Q70: Which of the following assumptions outlined by
Q72: Which of the following intensifies the business
Q73: The optimal capital structure will always be
Q74: The degree of operating leverage is defined
Q75: From a tax standpoint, in countries where