A firm that strives to achieve a particular mix of invested funds is said to have established a target capital structure.

Name: A firm that strives to achieve a particular mix of invested funds is said to have established a target capital structure.
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Question

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A firm can have a target capital structure which is the desired mix of debt, equity, and other sources of financing. It can help the firm optimize its cost of capital and align its financial structure with its business strategy.

A Firm That Strives to Achieve a Particular Mix of Invested