Choose all the correct options

Question

Which of the following statements best describes the optimal capital structure?

Accepted Answer

The optimal capital structure is the mix of debt, equity, and preferred stock, which maximizes the

company's stock price.

Answer

All of these answers are correct.

Answer

None of these answers are correct.

Answer

The optimal capital structure is the mix of debt, equity, and preferred stock which minimizes the company's cost of debt.

Answer

The optimal capital structure is the mix of debt, equity, and preferred stock which maximizes the company's earnings per share (EPS).

Trending Exams