The Static Theory of Capital Structure Assumes a Firm

question 45

Multiple Choice

The static theory of capital structure assumes a firm:

• A)maintains a constant debt-equity ratio.
• B)has an all-equity structure.
• C)is fixed in terms of its assets and operations.
• D)pays no taxes.
• E)is operating at the point where financial distress costs are eliminated.

---

Definitions:

L-Glutamic Acid

An amino acid involved in protein synthesis and the neurotransmitter cycle, playing key roles in brain function and metabolism.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with values ranging from 0 (acidic) to 14 (basic), and 7 being neutral.

L-Arginine

An essential amino acid that plays a vital role in protein synthesis and is a precursor for the synthesis of nitric oxide, a crucial compound for blood vessel health.

pH

A scale used to specify the acidity or basicity of an aqueous solution, where 7 is neutral, below 7 is acidic, and above 7 is basic.