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List the factors that might influence a firm’s choice of capital structure in the real life...

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Finance

List the factors that might influence a firm’s choice ofcapital structure in the real life and explain how each factoraffects the optimal leverage ratio in the context of tradeofftheory.

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Factors that might affect a firms choice of capital structure in the real life 1 Cost of Debt 2 Cost of Equity 3 Tax Rate 4 Issuance cost and distress costs Trade off theory explains the choice of debt    See Answer
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List the factors that might influence a firm’s choice ofcapital structure in the real life and explain how each factoraffects the optimal leverage ratio in the context of tradeofftheory.

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