The optimal capital structure is determined by several factors including all of the following except:
A)corporate capital gains
B)business risk
C)potential bankruptcy risk
D)agency costs

Question

Quizplus · Accepted Answer

Corporate capital gains are not a factor in determining the optimal capital structure. The other factors listed (business risk, potential bankruptcy risk, and agency costs) are all important in the decision-making process.

The Optimal Capital Structure Is Determined by Several Factors Including