Which of the following is not a feature of an optimal capital structure?

Solution (By Examveda Team)

An optimal capital structure is the best combination of debt and equity financing that maximizes a company's market value and minimizes its overall cost of capital.

Safety is a feature because a sound capital structure ensures the company can meet its obligations and reduces the risk of financial distress.

Flexibility is important as it allows the firm to adapt its financing strategy in response to changing market conditions or business needs.

Solvency is essential because a company must be able to meet its long-term financial commitments to remain financially healthy.

Control, however, is not a defining feature of an optimal capital structure. While management may prefer to retain control, the primary objective is value maximization, even if it results in some dilution of control.

Hence, the correct answer is Option C: Control.