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

A. Safety

B. Flexibility

C. Control

D. Solvency

Answer: Option B

Solution(By Examveda Team)

Flexibility is not a feature of an optimal capital structure. An optimal capital structure is the objectively best mix of debt, preferred stock, and common stock that maximizes a company's market value while minimizing its cost of capital.

This Question Belongs to Commerce >> Financial Management

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Comments ( 1 )

  1. CA Pawan
    CA Pawan :
    3 years ago

    A is right answer

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