The Two Main Factors That Determine a Firm's Capital Structure

question 53

Multiple Choice

The two main factors that determine a firm's capital structure are:

• A)whether debt interest payments are tax deductible and how increased debt might affect the likelihood of the firm going bankrupt.
• B)whether debt interest payments are tax deductible and whether or not the bonds could be sold at a premium.
• C)whether the markets are perfectly efficient and whether or not all participants have symmetric information.
• D)none of these.

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Mascot

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