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
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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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
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