In optimal capital structure the company’s cost of capital will be

Related MCQs

• A company should arrange the capital structure in such a way that there is maximum flexibility in the capital and cost of capital is
• Which of the following is not a feature of an optimal capital structure?
• Which of the following is not a feature of an optimal capital structure?
• The term optimal capital structure‘ implies that combination of external equity and internal equity at which ………
• According to MM approach, two identical firms in all respects except their capital structure can not have different market values or cost of capital because of-----
• According to which theory two identical firms in all respect except their capital structure can not have different market value or cost of capital because of arbitrage process
• A company can increase its value and reduce the overall cost of capital by increasing the proportion of debt in its capital structure according to ----- approach
• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• Use of Preference Share Capital in Capital structure
• Marginal cost of capital is the cost of: