Question: Round your final answer to 4 decimal places. Do not enter your answers in percentage. All answers are in decimal. Choose the correct option: A.

Round your final answer to 4 decimal places. Do not enter your answers in percentage. All answers are in decimal.

Choose the correct option:

A. The optimal capital structure of a firm will vary over time as taxes and market conditions change.

B. A firm should only use equity because of bankruptcy costs.

C. The optimal capital structure of a firm will vary over time as management team changes.

D. A firm should use more debts since cost of debt is lower than cost of equity.

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