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:

High Machiavellian

Characterizes individuals with a personality trait that predisposes them to manipulate others for personal gain, often without ethical considerations.

Political

Pertaining to the government, public affairs, or the administration of public policy.

Manipulate Encounters

A strategy or act of deliberately creating or influencing situations to achieve desired outcomes, often in a professional or social context.

Ingratiation

A social influence strategy where an individual attempts to make themselves more likable to another person or group, often through flattery or other means.