Question: Question 5 In deciding the optimal capital structure for a firm, which consideration should be given the most weight? The consistency of the firm's dividend
Question
In deciding the optimal capital structure for a firm, which consideration should be given the
most weight?
The consistency of the firm's dividend payout ratios over recent years.
The firm's historical capital structure and its evolution over time.
The preferences expressed by the firm's largest shareholders.
The comparative cost of debt relative to equity financing.
The imperative to maximize retained earnings for future growth.
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