A Firm's Optimal Capital Structure Is the Combination of Debt

Multiple Choice

A firm's optimal capital structure is the combination of debt financing and equity financing that ______. 

A) maximizes its expected earnings per share (EPS) .
B) simultaneously maximizes its EPS and minimizes its weighted average cost of capital (WACC) .
C) minimizes its cost of equity, which is a necessary condition for maximizing the firm's stock price.
D) simultaneously minimizes its cost of debt, its cost of equity, and its WACC.
E) maximizes its stock price.