Question: Question 4 In deciding the optimal capital structure for a firm, which consideration should be given the most weight? The comparative cost of debt relative
Question
In deciding the optimal capital structure for a firm,
which consideration should be given the most
weight?
The comparative cost of debt relative to equity
financing.
The preferences expressed by the firm's largest
shareholders.
The firm's historical capital structure and its evolution
over time.
The imperative to maximize retained earnings for
future growth.
The consistency of the firm's dividend payout ratios
over recent years.
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