For a Manager Attempting to Determine the Optimal Capital Structure

For a manager attempting to determine the optimal capital structure of a firm,which of the following is most accurate?

A) It is a fruitless endeavor and should be discouraged based on the conservation of value principle.
B) The best place to start is by examining the capital structures of the industry peer group of the company.
C) Well-defined algorithms exist that high-priced consulting firms use,and their cost is generally justified in terms of the potential value creation.
D) The best place to start is with a Monte Carlo simulation of possible market movements and their effects on the capitalization weights and the value of the firm.

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