Which Strategy-Active or Passive Capital Structure Management-Would Make the Process

question 112

Essay

Which strategy-active or passive capital structure management-would make the process of changing the firm's capital structure a longer-term proposition? Why?

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Definitions:

Independent Variable

In an experiment, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Manipulated

Altered, controlled, or handled skillfully, often with the implication of unfairness or deceit.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Placebo

A harmless pill, medicine, or procedure prescribed more for the psychological benefit to the patient than for any physiological effect.