Question: Whenever a firm splits itself into separate units, with each unit having limited liability with respect to its financing, the capital structure of each unit

Whenever a firm splits itself into separate units, with each unit having limited liability with respect to its financing, the capital structure of each unit becomes ______________.

A)An irrelevant consideration for a cost of capital

B)The relevant consideration for a cost of capital

C)Important only if the firm faces financial distress

D)None of the above

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