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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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