The optimal capital structure has been achieved when the A. weight of equity is equal to the weight of debt. B. debt-equity ratio selected results in the lowest possible weighted average cost of capital. C. firm is totally financed with debt. D. debt-equity ratio is such that the cost of debt exceeds the cost of equity. E. cost of equity is maximized. Reset Selection

Question

05-03-2020
Business

contestada

The optimal capital structure has been achieved when the A. weight of equity is equal to the weight of debt. B. debt-equity ratio selected results in the lowest possible weighted average cost of capital. C. firm is totally financed with debt. D. debt-equity ratio is such that the cost of debt exceeds the cost of equity. E. cost of equity is maximized. Reset Selection

Respuesta :

Otras preguntas

please help me school is open tomorrow I need to get those done please someone who have a good heart help me please. i'll give you 35 pts

expended form 605,970

why did smaller states object to the virginia plan

All the knowledge and values shared by a society are a part of its _____.

Which political theory has been interpreted to mean that a president can shield critical information from Congress as a result of the separation of powers?

Job A pays $13.00 per hour. Job B pays $11.00 per hour but has health benefits. Health insurance costs $3,400 per year. You expect to work 2,000 hours during th

you've located three books on a topic you;re researching for an essay. The first thing you should do in determining if any of these books will be useful

PLEASE HELP!!! PLEASE HELP!!! PLEASE HELP!!! GOLDILOCKS AND BEARS How would a first person version "Goldilocks and the Three Bears" written from Goldilocks' poi

A discounted concert ticket cost $14.50 less than the original price (p). You pay $53 for a discounted ticket. Write and solve an equation to find the original

SIMPLIFY 2x + 9 - 0.74x + 2.24

eooyibo123 eooyibo123 · Answer 1 · 2020-03-09T04:12:02+01:00

Answer:

debt-equity ratio results in the lowest possible weighted average cost of capital.

Explanation:

The debt equity ratio measures how well a business's equity can account for its debt.

Weighted average cost of capital is referred to as a business's cost of capital and is the rate a company is expected to pay to its shareholders.

When the debt equity ratio results in the lowest weighted average cost of capital, it indicates that the cost of finding for the company is low. This is the optimal and least expensive capital structure.