

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 | |