The firm's target capital structure should be consistent with which of the following statements?
A. Minimize the cost of debt (rd).
B. Obtain the highest possible bond rating.
C. Minimize the cost of equity (rs).
D. Minimize the weighted average cost of capital (WACC).
E. Maximize the earnings per share (EPS).
Answer: D
You might also like to view...
Which of the following is one of the best reasons why corporations should aggressively practice public relations?
A) It helps them to communicate their products and positions. B) It enables them to "spin" the issues in their favor. C) It invites further government regulation. D) It is cheaper than advertising.
A petition for a discharge in bankruptcy in a liquidation proceeding may be filed by
A. Eminent Employees Credit Union, a corporation. B. Federal Savings & Loan Association, a corporation. C. Goodhands Insurance Company, a corporation. D. Henry, an independent financial adviser.
Which of the following is NOT an example that falls within the four major categories of business environment factors for today's organizations?
A) globalization B) increased pool of customers C) fewer government regulations D) increased competition
What are the four categories of cafeteria plans?
What will be an ideal response?