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Basic Question 0 of 6
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. :-) |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
explain the selection of an optimal portfolio, given an investor's utility (or risk aversion) and the capital allocation line
CFA® 2025 Level I Curriculum, Volume 2, Module 1.