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Describe the relationship between firm's target capital structure and WACC.

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Finance

Describe the relationship between firm's target capitalstructure and WACC.

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Firms target capital structure refers to capital which the firm is trying to obtain target capital structure describes the mix of debt preferred stock and common equity which is expected to optimize a companys stock price As a company raises new capital it will focus on maintaining this target or optimal capital structure Weighted average cost of capital WACC is the average rate of return a    See Answer
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