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Basic Question 4 of 15

Regarding optimal capital structure, which statement is FALSE?

A. In practice, the optimal capital structure is likely to be within a range.
B. A firm's target capital structure is likely to be different from its optimal capital structure.
C. Market instead of book value weightings are preferred to represent a company's target capital structure.

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2024 Level I Curriculum, Volume 2, Module 6.