The optimal capital structure of a company aims to:

The optimal capital structure of a company is primarily concerned with the balance of debt and equity used to finance its operations, aiming to achieve the best possible outcome for the firm's value. This involves minimizing the overall cost of capital while maximizing the market value of the firm.

When a company effectively manages its capital structure, it can lower its weighted average cost of capital (WACC). A lower WACC indicates that the company can finance its operations more efficiently, which ultimately leads to increased profitability and a higher valuation in the eyes of investors. This strategic approach takes into account the trade-offs between the risks and benefits associated with different levels of debt and equity.

The focus on minimizing the cost of capital corresponds directly to maximizing firm value. A well-optimized capital structure aligns the interests of shareholders and creditors, facilitates growth opportunities, and strengthens the overall financial health of the company. This is why the correct answer highlights the importance of both minimizing the cost of capital and maximizing firm value.