[4] The optimal capital structure has been achieved when the: [A] weight of equity is equal to the weight of debt. [B] debt-to-equity ratio selected results in the lowest possible weighted average cost of capital. [C] cost of equity is maximized. [5] The optimal capital structure will tend to include more debt for firms with: [A] less taxable income. [B] lower probability of financial distress. [C] substantial tax shields from other sources.