Question: The optimal capital structure: 1. will remain constant over time unless the firm makes an acquisition. 2. is unaffected by changes in the financial markets.

The optimal capital structure:

1. will remain constant over time unless the firm makes an acquisition.

2. is unaffected by changes in the financial markets.

3. places more emphasis on the operations of a firm rather than the financing of a firm.

4. of a firm will vary over time as taxes and market conditions change.

5. will be the same for all firms in the same industry.

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