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Basic Question 0 of 23
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. :-) |

You have a wonderful website and definitely should take some credit for your members' outstanding grades.

Colin Sampaleanu
Learning Outcome Statements
calculate and interpret the mean, variance, and covariance (or correlation) of asset returns based on historical data
calculate and interpret portfolio standard deviation
describe the effect on a portfolio's risk of investing in assets that are less than perfectly correlated
CFA® 2025 Level I Curriculum, Volume 2, Module 1.