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Question 2 You are an outside analyst trying to determine a company's target optimal market weighted capital structure. Which of the following would be your
Question
You are an outside analyst trying to determine a company's target optimal market weighted
capital structure. Which of the following would be your best conclusion if you know nothing
else about the firm's target capital structure?
You should consider the current capital structure to be optimal and use that as the target capital
structure
You should use the average several of the company's competitors' structures as the target capital
structure
Youthould examine trends in the firm's capital structure or statements by management regarding
the optimal structure as the target capital structure
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