The Optimal Capital Structure

question 1

Multiple Choice

The optimal capital structure:

• A)of a firm will vary over time as taxes and market conditions change.
• B)is unaffected by changes in the financial markets.
• C)will be the same for all firms in the same industry.
• D)places more emphasis on the operations of a firm rather than the financing of a firm.
• E)will remain constant over time unless the firm makes an acquisition.

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Definitions:

Schizophrenic Disorder

A profound mental illness marked by altered cognition, perception, feelings, speech, self-identity, and actions.

Dissociative Fugue

A rare psychiatric disorder characterized by reversible amnesia for personal identity, including memories, personality, and other identifying characteristics.

Dissociative Amnesia

A psychological disorder characterized by temporary memory loss that cannot be attributed to normal forgetfulness.

Dissociative Disorders

Mental disorders that involve a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.