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 the impact of different financing options on a company's earnings.

What Is the Most Widely Used Technique for Determining the Best