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Answer: D

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A. 0
B. 1
C. 2
D. 3
Answer: A

NEW QUESTION: 3
The percentage mix of debt, preferred stock, and common equity that will maximize a firm's stock price is known as:
A. After tax cost of capital
B. Target (Optimal) Capital Structure
C. Marked to market value of equity
D. Marginal cost of capital
E. Weighted average cost of capital (WACC)
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The target or optimal capital structure of a firm is that percentage mix of debt, preferred stock, and common equity that will maximize the firm's stock price.

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