apital structure can be defined as the mix of a firm’s permanent long-term financing represented by debt, preferred stock, and common stock equity. True b. False 2. Optimum capital structure is proportionate of equity and debt a company adopts to maximize its wealth and market value and minimize its cost of capital True b. False 3. Minimizing the Weighted Average Cost of Capital (WACC) is NOT one way to optimize for the lowest cost mix of financing. True b. False
b)
1. Capital structure can be defined as the mix of a firm’s permanent long-term financing represented by debt,
True b. False
2. Optimum capital structure is proportionate of equity and debt a company adopts to maximize its wealth and market value and minimize its cost of capital
True b. False
3. Minimizing the Weighted Average Cost of Capital (WACC) is NOT one way to optimize for the lowest cost mix of financing.
True b. False
The most important factor in establishing a business is capital. It serves as the company's framework. The two main types of capital sources for a firm are equity and debt. A company's capital structure is characterized as the mix of stock and debt used to finance both the expansion and the company's overall operations.
Step by step
Solved in 3 steps
