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A firm's actual capital structure does not match its target capital structure. This outcome is least likely to be justified by: marketvalue fluctuations in its

A firm's actual capital structure does not match its target capital structure. This outcome is least likely to be justified by:

marketvalue fluctuations in its debt and equity securities it has issued to finance itself.

not being practical because market conditions may make it extremely difficult to raise capital.

the target capital structure not being the optimal capital structure according to the static tradeoff theory.

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