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The firms capital structure represents a strategic decision concerning the firms allocation mix of bond (debt) financing and stock (equity) financing. The purpose of the
The firms capital structure represents a strategic decision concerning the firms allocation mix of bond (debt) financing and stock (equity) financing. The purpose of the capital structure decision is to maximize share price and, therefore, shareholder wealth. Choose a hypothetical capital structure. Discuss and explain the economic justification of your chosen of capital structure. How does your chosen capital structure affect the firms cash flow, taxation expenses, and balance sheet?
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