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CFI. Exams | FMVA Practice Exam 1 8 out of 5 0 Review Which of the following statements about capital structure are correct? Select ALL

CFI.
Exams | FMVA Practice Exam
18 out of 50
Review
Which of the following statements about capital structure are correct? Select ALL correct answers.
Having too much equity may dilute earnings and the value of the original investors.
A company should always finance its business using as much debt as possible in order to optimize the capital structure.
A company needs to consider the current economic climate when making decisions on debt and equity proportions.
Having too little debt may increase the risk of default in repayment.
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