Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN: 9781337395250
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 14, Problem 1TCL
Summary Introduction

To determine: The level of debt, whether these companies have significant level of current liabilities, and the way the capital structure changes over the time.

Introduction:

Optimal Capital Structure:

The optimal mix of debt and equity in the capital structure of the company is known as the optimal capital budget. The optimal capital budget is also known as the optimal capital structure.

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