How does asymmetric information affect the firms capital structure decisions? How do the firms financing actions give

Question:

How does asymmetric information affect the firm’s decisions? How do the firm’s financing actions give investors signals that reflect management’s view of stock value?

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...