The objective of capital structure management is to find the capital mix that leads to ____.
A) maximization of earnings per share
B) shareholder wealth maximization
C) maximization of net income
D) maximization of the current period's dividends

Question

Quizplus · Accepted Answer

The objective of capital structure management is to find the capital mix that leads to shareholder wealth maximization. This means that the company aims to increase the value of its equity shares and provide greater returns to its shareholders, which in turn will attract more investors and positively impact the company's reputation and growth potential.

The Objective of Capital Structure Management Is to Find the Capital