Optimal capital structure so as to maximize its

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Reference no: EM132050887

1. A firm should raise capital according to its optimal capital structure so as to maximize its

a. earnings per share (EPS). b. stock price. c. weighted average cost of capital (WACC). d. net income.

2. If a change in sales results in a greater relative change in operating income (EBIT), we know that the firm has a.

a degree of operating leverage greater than one. b. a degree of financial leverage greater than one. c. a degree of operating leverage less than one. d. a degree of financial leverage less than one. e. none of the above.

Reference no: EM132050887

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