CFA Practice Question

There are 151 practice questions for this study session.

CFA Practice Question

If capital markets are perfect and there are no taxes, the firm's choice of a capital structure

A. is not very important.
B. is totally inconsequential.
C. depends on the current interest.
Correct Answer: B

In a world with perfect capital market and no taxes the capital structure decision is irrelevant.

User Contributed Comments 1

User Comment
setmefree in a perfect capital market: symmetric information, no transation costs, investor borrows at same rate as corporation,
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