According to an international survey of CFOs of publicly traded firms,which of the following was NOT considered to be an important factor in determining the optimal amounts of debt in a firm's capital structure?
A)Credit ratings
B)The tax shield
C)The ability to maintain dividends
D)All of the above were considered to be important.

Question

Quizplus · Accepted Answer

All of the options listed (credit ratings, the tax shield, and the ability to maintain dividends) are considered important factors in determining the optimal amounts of debt in a firm's capital structure according to surveys of CFOs. These factors influence the cost of capital, risk, and financial flexibility, which are crucial in capital structure decisions.

According to an International Survey of CFOs of Publicly Traded