The theories of capital structure do not give definitive answers to everyday questions about how firms should be financed; there is no unified theoretical model of leverage that can account for all these factors, but the factors are already included in theoretical models in the literature.

What determines capital structure choice and how do firms develop their capital structure over time?

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Determining capital structure and understanding how firms develop their capital structure over time is a complex and multifaceted topic in corporate finance While there is no unified theoretical model ... View the full answer