The ________ for a project will depend on the characteristics of both the project and the firm.

Question

Quizplus · Accepted Answer

Optimal leverage refers to the level of debt financing that provides the lowest overall cost of capital for a project. It is important to consider both the specific needs and risks of the project as well as the financial capabilities and goals of the firm in determining the optimal leverage ratio. Therefore, D is the best choice as it accurately describes the need to balance project and firm characteristics to determine the most efficient level of debt financing.

The ________ for a Project Will Depend on the Characteristics