In determining the optimum capital structure it is assumed that the firm will raise capital in the optimum proportions every year.

Question

Quizplus · Accepted Answer

The optimum capital structure is not a one-time decision and cannot be applied universally for every year. It is a dynamic process that depends on various factors such as market conditions, business strategy, and financial goals. Therefore, the firm may need to adjust its capital structure over time depending on changing circumstances.

In Determining the Optimum Capital Structure It Is Assumed That