As a General Rule, the Optimal Capital Structure

Multiple Choice

As a general rule, the optimal capital structure

A) maximizes expected EPS and also maximizes the price per share of common stock.
B) minimizes the interest rate on debt and also maximizes the expected EPS.
C) minimizes the required rate on equity and also maximizes the stock price.
D) maximizes the price per share of common stock and also minimizes the weighted average cost of capital.