Question # 6

How do the attitudes of managers affect capital structure decisions?

a. Managers generally use a positive attitude to obtain sales stability and increase financial leverage.

b. Managers use aggressive approaches to force stock sales and increase equity financing.

c. Managers generally make capital structure decisions without being affected by personal attitudes.

d. Managers make decisions about a company's ratings which impact the ability to obtain debt.

e. Managers often exercise their own judgment about the proper capital structure and their decisions are impacted by whether they tend to be more conservative or more aggressive.