EBK CFIN
EBK CFIN
5th Edition
ISBN: 9781305888036
Author: BESLEY
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 12, Problem 8PROB
Summary Introduction

Optimal capital structure:

Optimal capital structure is capital structure at which market price of the firm is highest.

Calculate the optimal capital structure as follows:

Optimal capital structure=DebtTotal Capital

Total capital amount is $50 million. Calculate the optimal capital structure.

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