- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 34. Capital Structure
- Subject 3. Optimal and Target Capital Structure

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**CFA Practice Question**

Which of the following is correct?

A. The optimal capital structure is the one that gives the maximum value to equity holders.

B. The optimal capital structure is the one that gives the maximum EPS.

C. The optimal capital structure is the one that gives the maximum WACC.

**Explanation:**In corporate finance optimal is that which makes the owners (shareholders) most wealthy.

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