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Basic Question 0 of 24

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

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 used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

calculate and interpret activity, liquidity, solvency, and profitability ratios

describe relationships among ratios and evaluate a company using ratio analysis

CFA® 2025 Level I Curriculum, Volume 3, Module 11.