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

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