Question

Questions: A firm's optimal capital structure:

Options:
a. is the debt-equity ratio that results in the lowest possible weighted average cost of capital.
b. is generally a mix of 40 percent debt and 60 percent equity.
c. is found by locating the mix of debt and equity which causes the earnings per share to equal exactly $1.
d. exists when the debt-equity ratio is .50.
e. is the debt-equity ratio that exists at the point where the firm's weighted after tax cost of debt is minimized.​

Answer 1

Answer:

Option A is the correct option