Afirm's optimal capital structure occurs where? select one: a. stock price is maximized, and eps are maximized. b. stock price is maximized, and wacc is maximized. c. eps are maximized, and wacc is minimized. d. wacc is minimized, and stock price is maximized.

A firm's optimal capital structure occurs where WACC is minimized and stock price is maximized.

The correct answer is D

Explanation:

Optimal capital structure exists where the market value of a firm is maximum and WACC is minimum. Optimal capital structure relates to net income approach to capital structure.

answercontrol is returned to method c;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.