Question
The optimal capital structure for a given firm would be the one which... ?? maximizes the firm's cost of equity capital minimizes the firms WACC
The optimal capital structure for a given firm would be the one which... ??
maximizes the firm's cost of equity capital
minimizes the firms WACC (Weighted Average Cost of Capital)
maximizes the present value of the firm's expected future free cash flows.
minimizes the cost of the firm's debt capital
both minimizes WACC and maximizes the present value of the firm's cash flows
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Standards Of Value
Authors: Jay E. Fishman, Shannon P. Pratt, William J. Morrison
2nd Edition
1118138538, 978-1118138533
