If interaction effects make it difficult for a firm to adjust its capital structure based on prevailing conditions, then Group of answer choices the firm should use as much debt financing as possible...

If interaction effects make it difficult for a firm to adjust its capital structure based on prevailing conditions, then

Group of answer choices

the firm should use as much debt financing as possible when it is financially healthy in order to benefit from lower corporate taxes

the firm should target a 50% debt/50% equity capital structure

the firm should choose the capital structure that will minimize all transaction costs--both direct and indirect

the firm should use more equity financing than is necessarily optimal today

Jun 07, 2022

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