The optimal capital structure is that capital structure which strikes a balance between risk and return such that the firm's stock price is maximized.

Name: The optimal capital structure is that capital structure which strikes a balance between risk and return such that the firm's stock price is maximized.
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The statement is true. The optimal capital structure is the one that balances the risk and return of a firm, and when it is achieved, the firm's stock price is maximized.

The Optimal Capital Structure Is That Capital Structure Which Strikes