16. A firm’s optimal capital structure ______

16. A firm’s optimal capital structure ______

is generally a mix of 40% debt and 60% equity.

exists when the debt-equity ratio is 0.5.

is the debt-equity ratio that exists at the point where the firm’s weighted after-tax cost of debt is minimized.

is the debt-equity ratio that results in the lowest possible weighted average cost of capital and the largest firm value.

find the cost of your paper