Not All Firms Have the Same Optimal Capital Structure

question 51

Multiple Choice

Not all firms have the same optimal capital structure. Factors that might influence a firm's capital structure include:

• A) the industry in which it operates.
• B) the volatility of its sales and operating income.
• C) the collateral value of its assets.
• D) all of the above

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Definitions:

Allowance

An amount of money given at regular intervals for a specific purpose, or the act of permitting something.

Overregularization

A language acquisition error where children apply general grammar rules too widely.

First Word

The initial instance of meaningful spoken language produced by a child.

Preoperational

A stage in Piaget's theory of cognitive development (approximately ages 2-7) where children begin to engage in symbolic play but lack the ability to perform operations or use logic.