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Basic Question 1 of 15
The objective of the firm should be to ______ when choosing a capital structure.
B. choose one that minimizes the firm's WACC
C. choose any capital structure since capital structure is always irrelevant
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. :-) |

I used your notes and passed ... highly recommended!

Lauren
Learning Outcome Statements
describe optimal and target capital structures
CFA® 2025 Level I Curriculum, Volume 2, Module 6.