asked 221k views
5 votes
What important factors, in addition to quantitative factors, should a firm consider when it is making a capital structure decision??

asked
User Cobolt
by
8.3k points

1 Answer

2 votes
The most important factors that must influence the decision of a company to make a capital structure decision are: 1. Business risks because it respects the main principle of The greater the business risk, the lower the optimal debt ratio. 2. Company's tax exposure to know how the company is dealing with taxes and debts, 3. Financial flexibility, 4. growth rate and 5. Market conditions
answered
User Corey Witherow
by
8.7k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.