Multiple Choice
Many firms base their actual capital structure decisions on which two factors?
A) Inflation and tax rates
B) Interest and tax rates
C) Need for financial slack and current interest rates
D) Need for financial slack and industry averages
E) Types of assets held and current interest rates
Correct Answer:

Verified
Correct Answer:
Verified
Q33: The free cash flow hypothesis states that:<br>A)firms
Q34: The optimal capital structure of a firm
Q35: Which one of these lowers cash flows?<br>A)Decreased
Q36: The All-Mine Corporation is deciding whether to
Q37: The MM theory with taxes implies that
Q39: The Wiz Co.owes $60 to its bondholders
Q40: Is there an easily quantifiable debt-equity ratio
Q41: Bondholders tend to offset the effects of
Q42: Mary owns 100 percent of a gift
Q43: Assuming the interest on the debt is