Which of the following statements regarding optimal capital structure is true?
A)A firm that is not operating at its optimal capital structure is likely to be acquired by another firm that can earn arbitrage profits by purchasing the firm at a low market price
And making the necessary adjustments to it capital structure.
B)The optimal capital structure tends to change as a firm's market value changes.
C)The optimal capital structure is elusive and largely irrelevant, and managers can spend their time better on other issues.
D)None of the above is a true statement.

Question

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The Answer of Which of the following statements regarding optimal capital structure is true?
A)A firm that is not operating at its optimal capital structure is likely to be acquired by another firm that can earn arbitrage profits by purchasing the firm at a low market price
And making the necessary adjustments to it capital structure.
B)The optimal capital structure tends to change as a firm's market value changes.
C)The optimal capital structure is elusive and largely irrelevant, and managers can spend their time better on other issues.
D)None of the above is a true statement.

Which of the Following Statements Regarding Optimal Capital Structure Is