Optimal capital structure is a company's optimal mix of:
A)short-term and long-term loans.
B)common and preference shares.
C)short-term and long-term liabilities.
D)debt and equity financing.
E)bills receivable and bills payable.

Question

Quizplus · Accepted Answer

Optimal capital structure refers to the best mix of debt and equity financing that maximizes a company's market value while minimizing its cost of capital.

Optimal Capital Structure Is a Company's Optimal Mix Of