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Author Question: Firms often have suboptimal capital structures because (Read 37 times)

nelaaney

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Firms often have suboptimal capital structures because
◦ their managers do not understand the theory of optimal capital structure.
◦ some business owners think their firm will never become insolvent.
◦ firms are affected differently by bankruptcy and agency costs.
◦ some firms do not pay taxes.
◦ operating leverage is more important than financial leverage in some firms.


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Marked as best answer by nelaaney on Apr 25, 2021

djpooyouma

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nelaaney

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


mammy1697

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Reply 3 on: Yesterday
:D TYSM

 

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