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    Financial Management Principles and Applications Study Set 2
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    Exam 15: Capital Structure Policy
  5. Question
    The Capital Structure That Minimizes the Weighted Average Cost of Capital
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The Capital Structure That Minimizes the Weighted Average Cost of Capital

Question 42

Question 42

Multiple Choice

The capital structure that minimizes the weighted average cost of capital will also


A) maximize EPS for any given level of EBIT.
B) minimize the value of the firm.
C) minimizes bankruptcy costs.
D) maximize the price per share of common stock.

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