There is abundant evidence that most companies operate at or near their optimal capital structures.

Question

Quizplus · Accepted Answer

While some companies may operate at their optimal capital structures, there are many that do not. Factors such as changes in market conditions, competition, and a company's growth prospects can all impact their optimal capital structure, leading them to operate with too much debt or too little. Additionally, companies may make strategic decisions to intentionally deviate from their optimal capital structure in order to fund specific initiatives or projects.

There Is Abundant Evidence That Most Companies Operate at or near Their