Which of the following factors would NOT directly affect the optimal capital structure?

Name: Which of the following factors would NOT directly affect the optimal capital structure?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The number of common shares outstanding does not directly affect a company's optimal capital structure. The optimal capital structure is more about the mix of different types of financing (debt, preferred stock, common equity) and the costs associated with each, rather than the quantity of any particular security issued.

Which of the Following Factors Would NOT Directly Affect the Optimal