A Firm Should Always Be at a Single Optimum Debt-To-Equity

question 79

True/False

A firm should always be at a single optimum debt-to-equity ratio to minimize its cost of capital.

---

Definitions:

Abraham Maslow

A pioneering psychologist best known for creating Maslow's hierarchy of needs, a theory in human psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Fulfil Potential

The process of realizing or achieving one's maximum capabilities or possibilities in any given area or field.

Drive to Grow

An intrinsic motivation or internal force that propels individuals towards personal development and fulfillment.

Humanistic Perspective

A psychological approach that emphasizes the study of the whole person and their potential for personal growth.