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

The optimal capital structure has been achieved when the: Multiple Choice debt-equity ratio is equal to 1. weight of equity is equal to the weight of debt. cost of equity is maximized given a pretax cost of debt. debt-equity ratio is such that the cost of debt exceeds the cost of equity. debt-equity ratio results in the lowest possible weighted average cost of capital.

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