When a fiRm Is Operating with the Optimal Capital Structure

question 161

True/False

When a firm is operating with the optimal capital structure, the required return on assets will be at
its maximum point.

---

Definitions:

Methodological Principle

A fundamental rule or procedure that guides scientific research and empirical study.

Positivism

A philosophical approach that asserts that the only authentic knowledge is that which is based on actual sense experience and positive verification.

Research Ethics

A set of ethical guidelines that governs the conduct of research to ensure the integrity of research practices and the protection of participants' rights and welfare.

Debriefing

Involves interviewing participants after a study to clarify what occurred and deal with any fallout related to deception.