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Norma-Jean [14]
4 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]4 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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A useful guideline in designing strategy-facilitating policies and operating procedures is: to prescribe enough policies to give organizational members clear direction in implementing strategy and to place reasonable boundaries on their actions, then empower them to act within these boundaries however they think makes sense.

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Answer:

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