As long as a firm is near its target capital structure it will not have to concern itself with financial flexibility.

Question

Quizplus · Accepted Answer

Even if a firm is near its target capital structure, it should still concern itself with financial flexibility as it may need to adjust its capital structure in response to changes in the market, business environment or operational needs. Financial flexibility allows the firm to quickly and efficiently adjust its capital structure and funding sources to take advantage of growth opportunities or mitigate financial risks.

As Long as a Firm Is near Its Target Capital