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A. 0
B. 1
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D. 3
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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. Marked to market value of equity
B. Weighted average cost of capital (WACC)
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D. Marginal cost of capital
E. Target (Optimal) Capital Structure
Answer: E
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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