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Optimum Capital Structure aims to:

AMaximise sales
BMinimise overall cost of capital and maximise firm value
CMaximise dividend payout
DMinimise tax
Answer & Solution
Correct answer: B. Minimise overall cost of capital and maximise firm value
1. Optimum capital structure = the mix that minimises Ko (WACC). 2. At this mix the value of the firm is maximised. 3. It involves trade-offs between cost and risk. _Source: ICAI BoS CA Inter Paper 6A, Ch 5 "Financing Decisions — Capital Structure", §3 — Optimal Capital Structure_
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