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What does an optimal capital structure aim to achieve? (Select all that apply)

a) Maximize the earnings per share
b) Maximize the value of the firm
c) Maximize the value of assets
d) Minimize the cost of capital

1 Answer

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Final answer:

The optimal capital structure aims to maximize the value of the firm, minimize the cost of capital, and maximize earnings per share.

Step-by-step explanation:

The optimal capital structure of a firm aims to achieve several objectives. Firstly, it aims to maximize the value of the firm by balancing debt and equity financing. Secondly, it aims to minimize the cost of capital by finding the most efficient mix of debt and equity. Lastly, it aims to maximize the earnings per share by optimizing the capital structure to increase profitability.

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