As a general rule, the optimal capital structure is the one that:
A) maximizes expected EPS and the price per share of common stock.
B) minimizes the interest rate on debt and maximizes the expected earnings per share.
C) minimizes the required rate on equity and maximizes the stock price.
D) maximizes the price per share of common stock and minimizes the weighted average cost of capital.
E) minimizes the expected earnings per share and maximizes the weighted average cost of capital.
Correct Answer:
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