Which of the following factor(s) can affect banks' debt-equity mix decision from the viewpoint of shareholders?

Question

Quizplus · Accepted Answer

All of the factors listed - dividend policy, ownership control, and financial risk - can influence a bank's decision regarding its debt-equity mix from the perspective of shareholders. Dividend policy affects the return on equity, ownership control relates to how equity financing might dilute current ownership, and financial risk is associated with the level of debt and its impact on the bank's stability and profitability.

Which of the Following Factor(s) Can Affect Banks' Debt-Equity Mix