9. Now prepare a summary of the implications of capital structure theory which can be...

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9. Now prepare a summary of the implications of capital structure theory which can be pre- sented to Steve Freeman. Consider specifically these issues: (a) Are the tax tradeoff and asymmetric information theories mutually exclusive? (b) Can capital structure theory be used to actually establish a firm's optimal capital structures with precision? If not, then what insights can capital structure theory provide managers regarding the factors which influence their firms' optimal capital structures? 9. Now prepare a summary of the implications of capital structure theory which can be pre- sented to Steve Freeman. Consider specifically these issues: (a) Are the tax tradeoff and asymmetric information theories mutually exclusive? (b) Can capital structure theory be used to actually establish a firm's optimal capital structures with precision? If not, then what insights can capital structure theory provide managers regarding the factors which influence their firms' optimal capital structures

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