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