The Optimal Capital Structure

question 24

Multiple Choice

The optimal capital structure:

• A) will be the same for all firms in the same industry.
• B) will remain constant over time unless the firm makes an acquisition.
• C) of a firm will vary over time as taxes and market conditions change.
• D) places more emphasis on the operations of a firm rather than the financing of a firm.
• E) is unaffected by changes in the financial markets.

---

Definitions:

Romantic Relationship

An intimate relationship between two people typically involving emotional and physical closeness, love, and affection.

Unscientific

A term used to describe methodologies, claims, or practices not based on or consistent with the principles of the scientific method.

Sexual Energy

A term often used to describe the force or drive behind sexual actions and desires, considered a powerful aspect of human physiology and psychology.

Freud

The pioneer of psychoanalytic theory, emphasizing unconscious motivations and conflicts as key drivers of human behavior.