Which of the Following Factors Do Not Seem to Matter

question 56

Multiple Choice

Which of the following factors do not seem to matter in the choice of a capital structure?

• A)the capital structure of a firm's peers
• B)pecking order concerns
• C)agency concerns
• D)All of the above factors seem to matter in the choice of a capital structure.

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Definitions:

Real GDP

A measure of a country's economic output adjusted for inflation, giving a more accurate view of an economy's size and how it's growing over time.

Nominal GDP

The gross domestic product measured at current market prices, without adjusting for inflation, reflecting the current value of goods and services produced.

Depreciation

The process of allocating the cost of a tangible or physical asset over its useful life, reflecting wear and tear, age, or obsolescence.

Depreciation

The gradual reduction of the recorded cost of a fixed asset over its useful life, reflecting the asset's wear and tear, obsolescence, or decline in value.