The firm's target capital structure should be consistent with which of the following statements?

Question

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The firm's target capital structure should aim to minimize the weighted average cost of capital (WACC), which is the cost of the combined debt and equity financing. This will result in the most efficient use of funds and maximize the value of the firm. Minimizing the cost of debt, obtaining the highest possible bond rating, and minimizing the cost of equity are all important considerations, but they should be balanced against the overall goal of minimizing the WACC. Maximizing earnings per share (EPS) is not necessarily the main objective for a firm when determining its capital structure.

The Firm's Target Capital Structure Should Be Consistent with Which