Which of the following statements is correct?
A) As a rule, the optimal capital structure is found by determining the debt-equity mix that maximises expected EPS.
B) The optimal capital structure simultaneously maximises EPS and minimises the WACC.
C) The optimal capital structure minimises the cost of equity, which is a necessary condition for maximising the share price.
D) The optimal capital structure simultaneously minimises the cost of debt, the cost of equity, and the WACC.
E) Each of the above statements is false.
Correct Answer:
Verified
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