The optimal capital structure has been achieved when the:单项选择题

A

weight of equity is equal to the weight of debt.

B

cost of equity is maximized given a pretax cost of debt.

C

debt-equity ratio is such that the cost of debt exceeds the cost of equity.

D

debt-equity ratio results in the lowest possible weighted average cost of capital.

E

debt-equity ratio is equal to 1.

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The relative proportions of debt, equity, and other securities that a firm uses to finance itself is referred to as:

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