Answer:
Good!!
Step-by-step explanation:
Hi! doing good, you?
Answer:
40% or 0.4
Step-by-step explanation:
The optimal capital structure (OCS) of a firm is defined as "the proportion of debt and equity that results in the lowest weighted average cost of capital (WACC) for the firm"
The brief explanation of this is that OCS is the factor used by a company in maximising their stock price, and this generally calls for a Debt-to-capital or "Debit-to-equity" ratio.
From the table above, the company's stock ratio is highest or maximised at 37.75 (under Projected Stock Price Column)
This can be traced to 40% under Debt/Capital ratio column
Hence, the Debt/Capital Ratio of 40%,
Because it must equate to 100%, we say that the firm's optimal capital structure is 40% debt and 60% equity.
This is also the debt to capital ratio, where the firms WACC is minimized.
<span>Scalene triangles;
is this multiple choice or is it a written question?</span><span /><span>
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Answer:
where is the question oooo
B. is the only one we know for sure. We know that when we put in -2 we get exactly one answer or output.
