The Optimal Capital Structure Is Determined by Several Factors, Including

question 33

Multiple Choice

The optimal capital structure is determined by several factors, including all except which of the following?

• A) Corporate capital gains
• B) Business risk
• C) Potential bankruptcy risk
• D) Agency costs

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Definitions:

FTC Commissioners

Officials appointed to the Federal Trade Commission (FTC), a U.S. federal agency, responsible for enforcing antitrust and consumer protection laws.

Staggered Terms

A system used in boards and committees where members are elected for different lengths of time, so not all members are replaced at once.

Fixed Terms

Contracts or agreements that are set for a specific, unchangeable duration of time, specifying start and end dates.

FTC Act

The Federal Trade Commission Act, a law established to prevent unfair business practices and protect consumers by promoting competition.