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The ________ Approach to Capital Structure Proposes That an Optimal

Question 211

Multiple Choice

The ________ approach to capital structure proposes that an optimal capital structure be selected which ________.


A) M and M; maximizes the weighted average cost of capital
B) traditional; minimizes the cost of debt
C) EBIT-EPS; maximizes the EPS
D) residual theory; minimizes dividends

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