Which of the following statements is true ? (A) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with long-term objectives of the firm (B) Optimal capital str

CS Executive · Financial and Strategic Management · PYQS · December 2022
Which of the following statements is true ? (A) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with long-term objectives of the firm (B) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with short-term objectives of the firm (C) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with both, long-term and short-term objectives of the firm (D) Optimal capital structure has nothing to do with objectives of the firm, and it is series of capital budgeting decisions that adheres the firm's objectives
(A) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with long-term objectives of the firm
(B) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with short-term objectives of the firm
(C) Optimal capital structure means a particular arrangement of various components of the capital which is in tune with both, long-term and short-term objectives of the firm
(D) Optimal capital structure has nothing to do with objectives of the firm, and it is series of capital budgeting decisions that adheres the firm's objectives

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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