Capital structure is important,but it CANNOT impact the overall value of a firm.

Name: Capital structure is important,but it CANNOT impact the overall value of a firm.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Capital structure can definitely impact the overall value of a firm. The choice of debt vs equity financing can affect the cost of capital and the risk profile of the company, which in turn affects the value. The optimal capital structure for a firm depends on various factors such as industry, stage of growth, tax policies, and so on.

Capital Structure Is Important,but It CANNOT Impact the Overall Value