Home › CBSE Class 12 (Commerce) › Business Studies › Financial Management › A capital structure is optimal when it results i…
A capital structure is optimal when it results in what?
AZero debt at all
BMaximum borrowing
CHigher share value
DLowest dividends
Answer & Solution
Correct answer: C. Higher share value
The best debt-equity mix is the one that raises the value of the equity share and shareholders' wealth.
Related questions
Higher inflation affects working capital requirement how?A larger lead time for raw materials means what for working capital?Credit availed from suppliers affects working capital requirement how?A liberal credit policy towards customers raises which requirement?A longer production cycle leads to what working capital need?During a boom, working capital requirement is typically what?Current liabilities are payment obligations due within what period?Which current asset is the most liquid?