Financial practice suggests that there is a range for an optimal capital structure for a firm within an industry rather than a specific optimal ratio of debt to equity.

Question

Quizplus · Accepted Answer

This is because the optimal capital structure can vary based on factors such as industry norms, the size of the company, the stage of the company's growth, and market conditions. Therefore, there is no single specific ratio of debt to equity that is considered optimal for all firms in all industries.

Financial Practice Suggests That There Is a Range for an Optimal