The optimal capital structure has been achieved when the: Multiple Choice cost of equity is maximized given a pretax cost of debt. debt-equity ratio results in the lowest possible weighted average cost of capital. debt-equity ratio is such that the cost of debt exceeds the cost of equity. weight of equity is equal to the weight of debt. debt-equity ratio is equal to 1.
The optimal capital structure has been achieved when the: Multiple Choice cost of equity is maximized given a pretax cost of debt. debt-equity ratio results in the lowest possible weighted average cost of capital. debt-equity ratio is such that the cost of debt exceeds the cost of equity. weight of equity is equal to the weight of debt. debt-equity ratio is equal to 1.
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
Question
The optimal capital structure has been achieved when the:
Multiple Choice
-
cost of equity is maximized given a pretax cost of debt.
-
debt-equity ratio results in the lowest possible weighted average cost of capital.
-
debt-equity ratio is such that the cost of debt exceeds the cost of equity.
-
weight of equity is equal to the weight of debt.
-
debt-equity ratio is equal to 1.
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