The optimal capital structure is the capital structure that strikes a balance between risk and return such that the firm's stock price is maximized.

Answer the following statement true (T) or false (F)


True

The optimal capital structure is the one that strikes a balance between risk and return to achieve the ultimate goal of maximizing the price of the firm's stock. See 12-1: The Target Capital Structure

Business

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Indicate whether the statement is true or false

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Identify the main verb in the sentence. Our clients were impressed by the presentation

Business

During its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1. YearNetIncomeDividendsRetainedEarnings1$1,700$1,000________22,7001,000________33,2002,000________45,4002,000________57,6003,000________

What will be an ideal response?

Business

Four factors help explain the extent to which employees and managers will be able to obtain a proportionately high level of the profits that they generate. Which is not one of these factors?

A. competitor bargaining power B. employee exit costs C. employee bargaining power D. employee replacement cost

Business