Which statement best describes the optimal capital structure?
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The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company’s stock price.
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The optimal capital structure is the mix of debt, equity, and preferred stock that maximizes the company’s EBIT.
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The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company’s cost of equity.
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The optimal capital structure is the mix of debt, equity, and preferred stock that minimizes the company’s cost of debt.