The value of a firm is maximized when the:

A) Cost of equity is maximized.
B) Tax rate is zero.
C) Levered cost of capital is maximized.
D) Weighted average cost of capital is minimized.
E) Debt-equity ratio is minimized.

Weighted Average Cost of Capital

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Levered Cost of Capital

The cost of capital for a company that has debt in its capital structure, reflecting the additional risk introduced by the use of debt.

Debt-equity Ratio

A gauge for the relative amounts of shareholders' equity and debt in a company's asset financing approach.