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Basic Question 4 of 15

Regarding optimal capital structure, which statement is FALSE?

A. In practice, the optimal capital structure is likely to be within a range.
B. A firm's target capital structure is likely to be different from its optimal capital structure.
C. Market instead of book value weightings are preferred to represent a company's target capital structure.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2024 Level I Curriculum, Volume 2, Module 6.