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

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Definitions:

Speculum

An instrument that permits viewing inside a body cavity.

Surgical Asepsis

The practice of creating and maintaining a sterile environment to prevent infection during surgical procedures.

Body Cavity

A space within the body that holds and protects internal organs.

Retractor

Instrument used to hold back tissue, making the operative site easier to visualize.