a. Why should financial managers choose the capital structure that maximizes the value of the firm? b.

Question:

a. Why should financial managers choose the that maximizes the value of the firm?
b. What is the relationship between the WACC and the value of the firm?
c. What is an optimal Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...