26&27

The theory of capital structure, that suggests a firm pursue an optimal mix of debt and equity to minimize the costs of capital, is called the: O static tradeoff theory O pecking order theory exhausted maple theory. O elegant borrowing theory. important diatribe theory, Question 27 The "y-intercept" of the Capital Asset Pricing Model is the: O market return O market risk premium. O risk-free rate. O risky asset return. Obeta coefficient