Which One of the Following Makes the Capital Structure of a Firm

question 72

Multiple Choice

Which one of the following makes the capital structure of a firm irrelevant?

• A)taxes
• B)interest tax shield
• C)100 percent dividend payout ratio
• D)debt-equity ratio that is greater than 0 but less than 1
• E)homemade leverage

---

Definitions:

Business Communication

The sharing of information between people within and outside an organization in a professional setting.

Chain of Command

The formal line of authority and communication in an organization, from the highest level of management to the lowest.

Texting Language

A form of written language that is characterized by the use of abbreviations, acronyms, and emoji, typically used in digital communication.

Email Signatures

A block of text automatically appended at the end of an email message usually containing the sender's name, contact information, and sometimes disclaimers or other legal information.