Different divisions with differing lines of business use different costs of capital because their cost of equity is different and also because the ________ could be different. A. optimal asset mix B. optimal current ratio C. optimal debtminusequity ratio D. optimal volatility

Cost of capital is based on source of capital, and weights of capital, therefore major components include cost of equity, cost of debt, and their weight-age thus the debt to equity ratio plays an important role,

correct option is optimal debt - equity ratio, this ratio depicts the proportion of debt to equity.

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Different divisions with differing lines of business use different costs of capital because their cost of equity is different and also because the​ ________ could be different. A. optimal asset mix B. optimal current ratio C. optimal debtminusequity ratio D. optimal volatility

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Different divisions with differing lines of business use different costs of capital because their cost of equity is different and also because the ________ could be different. A. optimal asset mix B. optimal current ratio C. optimal debtminusequity ratio D. optimal volatility