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Biotec Has Estimated the Costs of Debt and Equity Capital

Question 55

Multiple Choice

Biotec has estimated the costs of debt and equity capital for various proportions of debt in its capital structure: Biotec has estimated the costs of debt and equity capital for various proportions of debt in its capital structure: Based on these estimates, determine Biotec's optimal capital structure. A) 35% debt B) 40% debt C) 45% debt D) 50% debt
Based on these estimates, determine Biotec's optimal capital structure.


A) 35% debt
B) 40% debt
C) 45% debt
D) 50% debt

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