The degree of financial risk is the single most important determinant of a firm's capital structure.

Name: The degree of financial risk is the single most important determinant of a firm's capital structure.
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Question

Quizplus · Accepted Answer

While the degree of financial risk is an important factor, a firm's capital structure is determined by a variety of factors including market conditions, the firm's operational risk, tax considerations, flexibility needs, and the cost of financing options, among others.

The Degree of Financial Risk Is the Single Most Important