What is the goal when deciding on a company's capital structure?

The goal when deciding on a company's capital structure primarily revolves around minimizing the weighted average cost of capital (WACC) while maximizing the market value of the firm. This is crucial because the cost of capital is a critical factor in determining how attractive a company's investment opportunities are to investors.

WACC represents the average rate that a company is expected to pay to finance its assets through debt and equity. By minimizing WACC, a company can enhance its profitability and improve the attractiveness of its investment projects, thus increasing the overall market value. When WACC is low, it implies that the company is effectively utilizing its resources to generate returns that exceed the cost of financing, leading to growth in shareholder wealth.

In this context, the other choices don't align with the primary objectives tied to capital structure decisions. While expanding product range, enhancing employee morale, and reducing operational costs can all contribute positively to a company's performance, they do not directly relate to the strategic financial management focus of capital structure optimization. The decision-making process in capital structure specifically prioritizes the balance between equity and debt to ensure the firm's growth and value potential is maximized.