The reason that a firm may proceed from optimal capital structure in short run. Introduction: An optimal capital structure helps the firm to maximize its value. The optimal capital structure for a firm is one that offers a balance between the debt-to-equity range and minimize the firm’s cost of capital.

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Chapter 16.9, Problem 2CC

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To discuss: The reason that a firm may proceed from optimal capital structure in short run.

Introduction:

An optimal capital structure helps the firm to maximize its value. The optimal capital structure for a firm is one that offers a balance between the debt-to-equity range and minimize the firm’s cost of capital.

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