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.
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.
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