Not All Firms Have the Same Optimal Capital Structure

question 51

Multiple Choice

Not all firms have the same optimal capital structure. Factors that might influence a firm's capital structure include:

• A) the industry in which it operates.
• B) the volatility of its sales and operating income.
• C) the collateral value of its assets.
• D) all of the above

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Definitions:

Phobias

Persistent, excessive, irrational fears of specific objects or situations that lead to avoidance behavior.

Compulsions

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession, aimed at reducing anxiety or preventing a dreaded event.

Obsessions

Persistent, unwanted thoughts that cause distress and are difficult to control.

Antisocial Personality

A disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.