Q85
Traditional theorists believe that.
A.
there exists an optimal capital structure
AnswerB.
no optimal capital structure
C.
equal optimal capital structure
D.
100% debt financial organizations
Answer: Option A
Solution
Answer: Option A
Solution:
Traditional theorists believe that there exists an optimal capital structure. An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company's market value while minimizing its cost of capital.