Capital structure has no effect on shareholder value

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Reference no: EM131500530

Which one of these statements is correct?

A. Capital structure has no effect on shareholder value.

B. The optimal capital structure occurs when the cost of equity is minimized.

C. The optimal capital structure maximizes shareholder value.

D. Shareholder value is maximized when WACC is also maximized.

E. Unlevered firms have more value than levered firms when firms are profitable.

Please explain why?

Reference no: EM131500530

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