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Basic Question 1 of 15

The objective of the firm should be to ______ when choosing a capital structure.

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
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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. :-)
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2025 Level I Curriculum, Volume 2, Module 6.