The static theory of capital structure assumes a firm:
A)maintains a constant debt-equity ratio.
B)has an all-equity structure.
C)is fixed in terms of its assets and operations.
D)pays no taxes.
E)is operating at the point where financial distress costs are eliminated.

Question

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The Answer of The static theory of capital structure assumes a firm:
A)maintains a constant debt-equity ratio.
B)has an all-equity structure.
C)is fixed in terms of its assets and operations.
D)pays no taxes.
E)is operating at the point where financial distress costs are eliminated.

The Static Theory of Capital Structure Assumes a Firm