Question

Which of the following statements is correct? Select one: None of the other statements are correct...

Which of the following statements is correct?

Select one:

  1. None of the other statements are correct

b. A firm can earn arbitrage profit by acquiring another firm at a lower market price, which is not at its optimal capital structure by adjusting its capital structure

c. Optimal capital structure changes as a firm’s market value changes

d. Optimal capital structure is irrelevant and elusive

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