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Basic Question 1 of 15

The objective of the firm should be to ______ when choosing a capital structure.

A. choose one that results in the largest interest tax shield
B. choose one that minimizes the firm's WACC
C. choose any capital structure since capital structure is always irrelevant

User Contributed Comments 1

User Comment
DonAnd I narrowed it down to B or E and it definitely won't be E so voila B it is. :-)
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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2025 Level I Curriculum, Volume 2, Module 6.