Which of the Following Statements About the Choice of a Capital

question 29

Multiple Choice

Which of the following statements about the choice of a capital structure is (are) true?

• A)Firms seem to like to have a capital structure that is similar to that of their peers.
• B)Firms with more volatile underlying assets use more debt financing.
• C)Firms with lower corporate tax rates tend to issue more debt than those with higher corporate tax rates.
• D)Both B and C are true statements.

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Definitions:

Marcom Plan

Definition: Short for Marketing Communications Plan, it outlines the strategies and tactics businesses use to convey messages about their products or services to their target market.

Integrated Marketing Communications Plan

A strategic approach that combines multiple marketing communication channels and tools in a cohesive manner to promote a brand or product effectively.

Strategic Planning

The process of defining an organization's direction and making decisions on allocating resources to pursue this strategy.