The optimal capital structure of a firm the marketed claims

The optimal capital structure of a firm _____ the marketed claims and _____ the nonmarketed claims against the cash flows of the firm.

Multiple Choice

maximizes; minimizes

minimizes; minimizes

maximizes; maximizes

minimizes; maximizes

Solution

The optimal capital structure of a firm maximizes the marketed claims and minimizes the nonmarketed claims against the cash flows of the firm.

maximizes; minimizes