The fact that some managers are more aggressive in their use of debt financing in attempting to boost profits does not influence the optimal or value-maximising capital structure.

Question

Quizplus · Accepted Answer

The optimal or value-maximizing capital structure is determined by factors such as the company's financial situation, industry norms, and investor preferences. The behavior of individual managers in terms of their use of debt financing does not affect this optimal structure.

The Fact That Some Managers Are More Aggressive in Their