A firm should select a financing mix which maximizes its value and the shareholders' wealth. Such is referred to as
A)Optimal Capital Ration
B)Optimal Capital Budget
C)Optimal Capital costs
D)Optimal Capital structure

Question

Quizplus · Accepted Answer

The optimal capital structure is the mix of debt, equity, and other financing sources that minimizes the firm's cost of capital and maximizes its value and the shareholders' wealth.

A Firm Should Select a Financing Mix Which Maximizes Its