Question: The optimal capital structure has been achieved when the Multiple Choice cost of equity is maximized. weight of equity is equal to the weight of
The optimal capital structure has been achieved when the Multiple Choice cost of equity is maximized. weight of equity is equal to the weight of debt. firm is totally financed with debt. debt-equity ratio is such that the cost of debt exceeds the cost of equity. debt-equity ratio selected results in the lowest possible weighted average cost of capital
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