Which of the Following Is NOT a Factor for Determining

question 11

Multiple Choice

Which of the following is NOT a factor for determining whether to use the active or passive approach to capital structure changes?

• A) How much the firm faces in flotation costs under the active management approach
• B) How much the firm faces in debt costs under the active management approach
• C) How quickly the firm is growing
• D) How strongly and how quickly they wish to change the capital structure