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As a general rule, the capital structure that maximizes firm value, or stock price also mximizes the expected rate of return on equity (ROE) maximizes
As a general rule, the capital structure that maximizes firm value, or stock price also
mximizes the expected rate of return on equity (ROE) |
maximizes the weighted average cost of capital (WACC) |
minimizes the weighted average cost of capital (WACC) |
maximizes EPS |
minimizes bankruptcy costs |
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