Question
Which of the following statements accurately describes the factors affecting firm capital structure? A. Firms with high proportion of intangible assets tend to have higher
Which of the following statements accurately describes the factors affecting firm capital structure?
A. Firms with high proportion of intangible assets tend to have higher debt to equity ratio.
B. A newly established high-tech firm tends to have high level of debt to finance its growth.
C. More than one of the other statements accurately describes the factors affecting firm capital structure.
D. Issuing equity can help to reduce free cash flow problem, hence profitable firms with few positive NPV projects tend to have lower debt to equity ratio.
E. None of the other statements accurately describes the factors affecting firm capital structure.
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