The Optimal Capital Structure

question 69

Multiple Choice

The optimal capital structure:

• A) Will be the same for all firms in the same industry.
• B) Will remain constant over time unless the firm does an acquisition.
• C) Of a firm will vary over time as taxes and market conditions change.
• D) Places more emphasis on the operations of a firm rather than the financing of a firm.
• E) Is unaffected by changes in the financial markets.