Cost of capital calculations assume that capital is usually raised:

A) in the proportions of either the target or the existing capital structure.
B) by selling as much as possible of one security at a time.
C) in the proportions of the existing capital structure.
D) in the proportions of the target capital structure.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.

Target Capital Structure

The optimal mix of debt, equity, and other securities a company aims to hold, balancing risk and return to maximise shareholder value.