The Optimal Capital Structure Depends on ________ Such as Taxes

question 28

Multiple Choice

The optimal capital structure depends on ________ such as taxes, distress costs and agency costs.

• A) capital market factors
• B) market imperfections
• C) firm specific risks
• D) systematic risks

---

Definitions:

Flexibility

The ability to adapt to changes, challenges, or new requirements with ease and minimal disruption.

Cultural Distance

Refers to the difference in cultural values and beliefs between countries or societies, affecting international business operations and interactions.

Impedes Communication

Hinders or obstructs the effective exchange of information between individuals or groups.

Gen Y

Also known as Millennials, a demographic cohort following Generation X and characterized by their birth years from the early 1980s to the late 1990s.