Which are true of the trade-off capital structure theory

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Problem 1: All of the following are true of the trade-off capital structure theory EXCEPT

a. the idea is to obtain the lowest weighted average cost of capital (WACC).

b. most companies attempt to meet the optimal capital structure when raising new capital.

c. a company with many assets for collateralization could choose a target capital structure with more debt than the optimal structure would suggest.

d. target capital structure accounts for individual- and industry-specific factors.

Reference no: EM132796340

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