The aim of this group project is to critique the following article: Bradley, M., Jarrell, G. A., & Kim, E. H. (1984). On the existence of an optimal capital structure: Theory and evidence. The Journal of Finance, 39(3), 857-878. Answer the following questions: Setting: What is the research question? (1 mark)

Theoretical framework: What is the theory that has been used in the article? (2 marks)

Data and Variables: What is the type of data used? What does the sample consist of? Define the variables used. (1 mark) Model: Explain the model established in equation 7. (2 marks)

Statistical Analysis: Interpret the parameters estimated using all firms sample in table three. Are the coefficients statistically significant? (3 marks)

Conclusion: What is the conclusion of the article?