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jcarpp jcarpp
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3 years ago
Firms often have suboptimal capital structures because

▸ their managers do not understand the theory of optimal capital structure.

▸ some business owners think their firm will never become insolvent.

▸ firms are affected differently by bankruptcy and agency costs.

▸ some firms do not pay taxes.

▸ operating leverage is more important than financial leverage in some firms.
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 2nd
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aznzergsaznzergs
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3 years ago
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jcarpp Author
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3 years ago
Helped a lot
TheMoffattMan
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Yesterday
This helped my grade so much Perfect
zbmallo3
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2 hours ago
Just got PERFECT on my quiz
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