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QUESTION 5 The capital structure(debt/equity) decision of a publicly listed company is a challenging decision for the top management because Management finds it difficult to

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QUESTION 5 The capital structure(debt/equity) decision of a publicly listed company is a challenging decision for the top management because Management finds it difficult to raise equity or debt from the capital market management knows that debt is considered a negative signal by the market of the firm's prospects Management is uncertain how the capital structure changes will be interprted by the market Management finds that equity is often a costly way to raise external capital

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