Question
-Explain why capital structure policy involves a trade-off between risk and return, and list the four primary factors that influence capital structure decisions. -Distinguish between
-Explain why capital structure policy involves a trade-off between risk and return, and list the four primary factors that influence capital structure decisions.
-Distinguish between a firm's business risk and its financial risk.
-Briefly explain the extent that capital structure varies across industries, individual firms in each industry, and different countries
-Discuss why the dividend decision is made jointly with capital structure and capital budgeting decisions.
-Specify why a firm might split its stock or pay a stock dividend.
-Discuss stock repurchases, including advantages and disadvantages, and effects on EPS, stock price, and the firm's capital structure.
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