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Norma-Jean [14]
3 years ago
15

Which of the following statements best describes the optimal capital structure? The optimal capitalstructure is the mix of debt,

equity, and preferred stock that maximizes the company's ____.A. stock price.B. cost of equity.C. cost of debt.D. cost of preferred stock.E. earnings per share (EPS).
Business
1 answer:
saveliy_v [14]3 years ago
6 0

Answer:

The correct answer is a) stock price.

Explanation:

The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company's stock price. Debt financing supposes a low cost of capital, debt financing raises the risk to shareholders. In conclusion, the enterprise should find an equilibrium point to avoid a crisis.

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