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A Firm Sets a Target Capital Structure to Use When

Question 60

Multiple Choice

A firm sets a target capital structure to use when raising new funds in an effort to:


A) maximize its earnings per share (EPS) .
B) minimize its cost of debt (rd) .
C) maximize the dividend per share it pays commons stockholders.
D) minimize its cost of equity (rs) .
E) minimize its weighted average cost of capital (WACC) .

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