Question: Question 7 In deciding the optimal capital structure for a firm, which consideration should be given the most weight? The preferences expressed by the firm's
Question
In deciding the optimal capital structure for a firm, which consideration should be given the
most weight?
The preferences expressed by the firm's largest shareholders.
The imperative to maximize retained earnings for future growth.
The firm's historical capital structure and its evolution over time.
The comparative cost of debt relative to equity financing.
The consistency of the firm's dividend payout ratios over recent years.
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