Question
Which of the following statements is CORRECT? *The optimal capital structure simultaneously maximizes EPS and minimizes the WACC. *The optimal capital structure minimizes the cost
Which of the following statements is CORRECT?
*The optimal capital structure simultaneously maximizes EPS and minimizes the WACC.
*The optimal capital structure minimizes the cost of equity, which is a necessary condition for maximizing the stock price.
*The optimal capital structure simultaneously minimizes the cost of debt, the cost of equity, and the WACC.
*The optimal capital structure simultaneously maximizes stock price and minimizes the WACC.
*As a rule, the optimal capital structure is found by determining the debt-equity mix that maximizes expected
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