What is the most widely used technique for determining the best combination of debt and stock?
A) Debt-to-Stock Ratio
B) Earnings Per Share/Earnings Before Interest and Taxes Analysis
C) Gross Profit Analysis
D) Capital Asset Pricing Model
E) Present Value Analysis

Question

Quizplus · Accepted Answer

Earnings Per Share/Earnings Before Interest and Taxes Analysis is commonly used to determine the optimal capital structure by analyzing how different combinations of debt and equity affect a company's earnings per share.

What Is the Most Widely Used Technique for Determining the Best