Which one of the following considerations are not a concern of managers when they make capital structure decisions.
A) Financial flexibility
B) Net income risk.
C) Systematic risk
D) Earnings impact

Question

Quizplus · Accepted Answer

Systematic risk is a concern for managers when making capital budgeting decisions for investments or projects, but it is not directly related to capital structure decisions. Financial flexibility, net income risk, and earnings impact are all important considerations when determining the optimal capital structure for a company.

Which One of the Following Considerations Are Not a Concern