The optimal capital structure can be realized if : Debt-equity ratio selected results in the lowest possible weighted average cost of capital.
- An optimal capital structure can be regarded as best mix of debt as well as equity financing which maximizes a company's market value.
- And as well minimizing its cost of capital, it can be realized when Debt-equity ratio that is been selected, gives the lowest possible weighted average cost of capital.
Learn more at:
https://brainly.com/question/10782180?referrer=searchResults
