A firm's target capital structure is management's estimate of the optimal capital structure.
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Q126: EBIT measures operating efficiency only, while ROE
Q127: DFL equals EBIT / (EBIT - I).
Q128: The optimal capital structure maximizes stock price.
Q129: The optimal capital structures can be precisely
Q130: As a company increases its financial leverage,
Q132: EPS, and not Net Income, is the
Q133: In a leveraged firm, the variation in
Q134: Whenever a firm's ROCE exceeds the after
Q135: The return on capital employed (ROCE)measures performance
Q136: The Degree of Financial Leverage(DFL)quantifies the effect
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