Question: A firms target capital structure represents: Multiple Choice the cost of equity to achieve the desired NPV. the cost of debt to achieve the desired

A firms target capital structure represents:

Multiple Choice

  • the cost of equity to achieve the desired NPV.

  • the cost of debt to achieve the desired NPV.

  • a fixed debt-equity ratio that the company attempts to maintain.

  • a fixed cost of capital that the company maintains.

  • the required return for the project with the highest NPV.

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