The opitmal capital structure of a firm is the capital structure that: o minimizes the operating risk of the firm's assets. o minimizes the tax shield created by debt. maximizes the default risk of long-term debt. maximizes the price of the firm's stock. The combination or the proportion of of debt and equity used to finance a firm is known as O capital budgeting O the trade-off theory syndication securitization the capital structure The risk associated with a firm's operations, stemming from fixed operating costs, is known as market risk O business risk leverage risk financial risk beta risk What is financial leverage? The presence of fixed operating costs that do not change when the level of sales changes The portion of dividend paid out to the common stockholders The combination of debt and equity used to finance a firm The amount of long-term debt used in a firm's capital structure