Most firms are able to use _____ percent debt in their capital structure without exceeding norms acceptable to creditors and investors.

Question

Quizplus · Accepted Answer

The generally accepted range for debt in a firm's capital structure is between 30-50%. Going beyond this range may make investors and creditors apprehensive about the firm's ability to meet its debt obligations. However, the exact percentage may vary depending on the industry, economic conditions, and the individual characteristics of the firm.

Most Firms Are Able to Use _____ Percent Debt in Their