Most financial theorists believe that the optimal capital structure is a ________ with a debt to total value ratio somewhere around ________.

Question

Quizplus · Accepted Answer

Most financial theorists believe that there is no one optimal capital structure, rather there is a range that is optimal for each individual company depending on its specific circumstances. This range typically falls between 30% and 60% debt to total value ratio. Therefore, option C is the best choice as it reflects this widely accepted view.

Most Financial Theorists Believe That the Optimal Capital Structure Is