A firm's optimal capital structure is the combination of debt financing and equity financing that ______.

Select one:

a.simultaneously minimizes its cost of debt, its cost of equity, and its WACC.

b.minimizes its cost of equity, which is a necessary condition for maximizing the firm's stock price.

c.simultaneously maximizes its EPS and minimizes its weighted average cost of capital (WACC).

d.maximizes its stock price.

e.maximizes its expected earnings per share (EPS).

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