Question
The optimal capital structure has been achieved when the: debt-equity ratio is such that the cost of debt exceeds the cost of equity. weight of
The optimal capital structure has been achieved when the:
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debt-equity ratio is such that the cost of debt exceeds the cost of equity.
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weight of equity is equal to the weight of debt.
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cost of equity is maximized given a pretax cost of debt.
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present value of the financial distress costs equals the present value of the tax shield on debt.
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debt-equity ratio is equal to 1.
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
12th edition
1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056
