According to …. principle the ideal pattern of capital structure is one that tends to minimize the cost of financing.

Related MCQs

• Black & White Ltd. Has a cost of equity of 11% and a pre-tax cost of debt of 8.5%. The firm's target Weighted average cost of capital is 9% and its tax rate is 35%. What is the firm's target debt-equity ratio?
• ………. on capital is called cost of capital.
• Financing methods for merger and acquisition exclude:
• ……… is not a financing method for merger and acquisition.
• The term "capital structure" refers to:
• In ……. Approach, the capital structure decision is relevant to the valuation of the firm.
• The term capital structure refers to
• In …… approach says that capital structure decision is relevant to the valuation of the firm.
• The term capital structure refers to…………..
• Traditional approach of capital structure is also known as….