Choosing a Capital Structure What is the primary goal of financial managers? Maximize stockholder wealth We want to choose the capital structure that will maximize stockholder wealth We can maximize stockholder wealth by maximizing firm value or minimizing WACC4 Choosing a Capital Structure n What is the primary goal of financial managers? q Maximize stockholder wealth n We want to choose the capital structure that will maximize stockholder wealth n We can maximize stockholder wealth by maximizing firm value or minimizing WACC