The Two Main Factors That Determine a Firm's Capital Structure

The two main factors that determine a firm's capital structure are ____________________.

A) whether debt interest payments are tax deductible and how increased debt might affect the likelihood of the firm going bankrupt
B) whether debt interest payments are tax deductible and whether or not the bonds could be sold at a premium
C) whether the markets are perfectly efficient and whether or not all participants have symmetric information
D) None of these

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free