- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 6. Capital Structure
- Subject 4. Optimal Capital Structure
CFA Practice Question
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.
Correct Answer: All statements are true.
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