Use appropriate theories of capital structure to offer reasoned
explanations of why the following phenomenon are...
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Finance
Use appropriate theories of capital structure to offer reasonedexplanations of why the following phenomenon are observed inreality: i. Utility and airline companies are likely to have highlevels of debt; ii. High-technology companies are likely to rely onequity financing; iii. The most profitable companies, such asGoogle, Microsoft, have little debt.
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the four approaches to capital structure theory are net income approach states that debt financing decreases overall cost of capital and increases the value of firm net operating income approach states that WACC is constant when there are no taxes traditional approach states that there is one optimal capital structure which minimizes capital cost modigliani millier approach it
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