Managers Should Not Change the Capital Structure Unless It Departs

question 87

Multiple Choice

Managers should not change the capital structure unless it departs significantly from the optimal level because such a change would ________.

• A) reduce dividends
• B) incur transactions costs
• C) increase fixed costs
• D) change incentives of stakeholders

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Definitions:

Sexually Transmitted Infections

Illnesses passed on through sexual activities, originating from viruses, bacteria, or parasites.

Chlamydia

A widespread sexually transmitted disease resulting from the bacterium Chlamydia trachomatis, frequently showing no symptoms yet curable with antibiotics.

Health Problems

Various conditions or diseases that negatively impact an individual's physical or mental well-being.

Load Factor

Load Factor measures the efficiency of resource utilization, often used in industries like transportation to indicate the percentage of available capacity being used.