The firm’s target capital structure is consistent with which of the following()
A. Minimum WACC.
B. Minimum cost of equity (KS).
C. Maximum EPS.
参考答案:A
解析:
Risk the firm can take on should be maximized to the point where it results in a higher share price; all components of the WACC should be considered, and the goal is to maximize the stock price, not EPS. Minimum WACC is the only correct answer.