Multiple Choice
The optimal capital structure for firms in cyclical industries should contain ________________ than firms in stable industries.
A) more debt
B) less debt
C) an equal amount of debt
D) There is no relationship between the cyclical nature of an industry and optimal capital structure.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q31: When both the tax deductibility of debt
Q32: Firm X has a tax rate of
Q33: The cost of retained earnings is equal
Q34: The use of common stock equity in
Q35: Use of the marginal cost of capital:<br>A)
Q37: The required rate of return for a
Q38: Each project should be judged against:<br>A) the
Q39: As investors become more pessimistic (risk averse):<br>A)
Q40: An increase in the risk-free rate causes
Q90: A firm's cost of preferred stock is