the capital structure that maximizes the value of a company also: multiple choice minimizes financial distress costs. minimizes the cost of capital. maximizes the present value of the tax shield on debt. maximizes the value of the debt. maximizes the present value of the bankruptcy costs.

Respuesta :

The capital structure that maximizes the value of a company also minimizes the cost of capital.

In corporate finance, capital structure refers to the combination of various forms of external funds, called capital, used to finance a business. It consists of equity, debt and preferred stock and is reflected on the company's balance sheet.

Capital structure refers to the specific combination of liabilities and equity used to finance a company's assets and operations. Equities represent a more expensive, more financially flexible, permanent source of capital from a corporate perspective. It can be described as placement. type, equity and debt. Various types of funds raised by companies include preferred stock, equity, retained earnings, long-term loans, etc.

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