MCQOPTIONS
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| 1. |
The term optimal capital structure implies that combination of external equity and internal equity at which |
| A. | the overall cost of capital is minimised |
| B. | the overall cost of capital is maximised |
| C. | the market value of the firm is minimised |
| D. | the market value of firm is greater than the overall cost of capital |
| Answer» B. the overall cost of capital is maximised | |