Operating a firm without debt is generally considered to be a conservative practice Discuss how such a conservative approach to a firms capital structure is good or bad for the value of the firm in the absence of information or transaction costs and any effect of debt on the real investment policy ...

In the absence of information or transactions costs and any effect of debt on the r ...

Operating a firm without debt is generally considered to be a conservative practice. Discuss how such a

Question:

Operating a firm without debt is generally considered to be a conservative practice. Discuss how such a conservative approach to a firm’s is good or bad for the value of the firm in the absence of information or transaction costs and any effect of debt on the real investment policy of the firm.

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...