One recommendation in the chapter is that companies with promising investment opportunities should strive to maintain a

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One recommendation in the chapter is that companies with promising investment opportunities should strive to maintain a conservative capital structure. Yet many promising small businesses are heavily indebted.

a. Why should most companies with promising investment opportunities strive to maintain conservative capital structures?

b. Why do you suppose many promising small businesses fail to follow this recommendation?

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Analysis For Financial Management

ISBN: 9781260772364

13th Edition

Authors: Robert Higgins, Jennifer Koski, Todd Mitton

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