The capital structure that maximizes firm value

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Reference no: EM13723872

As a general rule, the capital structure that maximizes firm value, or stock price also

maximizes the expected rate of return on equity (ROE)

maximizes the weighted average cost of capital (WACC)

minimizes the weighted average cost of capital (WACC)

maximizes EPS

minimizes bankruptcy costs

Reference no: EM13723872

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