Question: The optimal capital structure has been achieved when the: 2 points) a) debt-equity ratio is equal to 1. b) weight of equity is equal to

The optimal capital structure has been achieved when the: 2 points) a) debt-equity ratio is equal to 1. b) weight of equity is equal to the weight of debt. c) cost of equity is maximized given a pre-tax cost of debt. d debt-equity ratio is such that the cost of debt exceeds the cost of equity e) debt-equity ratio results in the lowest possible weighted average cost of capital

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