The Optimal Capital Structure Has Been Achieved When the

Multiple Choice

The optimal capital structure has been achieved when the

A) weight of equity is equal to the weight of debt.
B) debt-equity ratio selected results in the lowest possible weighted average cost of capital.
C) firm is totally financed with debt.
D) debt-equity ratio is such that the cost of debt exceeds the cost of equity.
E) cost of equity is maximized.