Because of the extensive research conducted in recent years in the area of capital structure theory, it is now possible for financial managers to pinpoint with great accuracy a firm's optimal capital structure.

Question

Quizplus · Accepted Answer

Although extensive research has been conducted on capital structure theory, it is difficult to pinpoint with great accuracy a firm's optimal capital structure as it depends on various factors such as the industry, business risks, growth opportunities, etc. Therefore, optimal capital structure is subjective and not a one-size-fits-all approach.

Because of the Extensive Research Conducted in Recent Years in the Area