Explain four of the most important factors influencing capital structure decisions as indicated in the survey results

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Explain four of the most important factors influencing capital structure decisions as indicated in the survey results and how they relate to the conceptual discussion of an optimal capital structure.
The four most important factors in the Deutsche Bank survey were:
1) Credit rating
2) Tax shield
3) The ability to continue making investments
4) The ability to maintain dividends
Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
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International Accounting

ISBN: 978-0077862206

4th edition

Authors: Timothy Doupnik, Hector Perera

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