Question
The traditional theory of optimal capital structure states that firms trade off corporate interest tax shields against the possible costs of financial distress due to
The traditional theory of optimal capital structure states that firms trade off corporate interest tax shields against the possible costs of financial distress due to borrowing. What does this theory predict about the relationship between book profitability and target book debt ratios? Is the theorys prediction consistent with the facts?
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Auditing A Risk Analysis Approach
Authors: Larry F. Konrath
5th Edition
032405789X, 9780324057898
