Solved

The Optimal Capital Structure Will Tend to Include More Debt

Question 253

Multiple Choice

The optimal capital structure will tend to include more debt for firms with:


A) The highest depreciation deductions.
B) The lowest marginal tax rate.
C) Substantial tax shields from other sources.
D) Lower probability of financial distress.
E) Less taxable income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions