As a general rule, the capital structure that
A) Maximises expected EPS also maximises the price per share of ordinary shares.
B) Minimises the interest rate on debt also maximises the expected EPS.
C) Minimises the required rate on equity also maximises the share price.
D) Maximises the price per share of ordinary shares also minimises the weighted average cost of capital.
E) None of the above.
Correct Answer:
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A)
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