Multiple Choice
The target capital structure of a firm is the capital structure that:
A) minimizes the operating risk of the firm's assets.
B) maximizes the tax shield created by debt.
C) minimizes the default risk of long-term debt.
D) maximizes the price of the firm's stock.
E) maximizes the dividends paid to common stockholders.
Correct Answer:
Verified
Correct Answer:
Verified
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