Financial theory has at last provided us with a single optimal capital structure for domestic firms.

Name: Financial theory has at last provided us with a single optimal capital structure for domestic firms.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Financial theory does not provide a single optimal capital structure for domestic firms as different firms have different financial needs, risk tolerance levels, and market conditions. Therefore, capital structure decisions are subjective and depend on individual company factors.

Financial Theory Has at Last Provided Us with a Single