Multiple Choice
When the impact of taxes is considered, but the impact of financial distress is ignored, the optimal financial structure is
A) all equity.
B) an equal mix of debt and equity.
C) any mix of debt and equity. The proportions will not matter.
D) all, or nearly all, debt.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q70: Cabot Corp has a debt ratio
Q71: The objective of capital structure management is
Q72: Which of the following is NOT a
Q73: Other things the same, the use of
Q74: At the beginning of the financial crisis
Q76: Zybeck Corp. projects operating income of $4
Q77: When the impact of taxes is considered,
Q78: When equipment is acquired under a capital
Q79: Tremont Inc.'s Total Assets =$25 million. The
Q80: The inclusion of bankruptcy costs and taxes