Unformatted text preview: Sample short answer question The empirical evidence on capital structure suggests that large profitable companies have low debt ratios. a) Is this evidence consistent with the static theory of capital structure? Provide reasons for your answer b) Is this evidence consistent with any other theory of capital structure? Provide reasons for your answer...
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This note was uploaded on 03/30/2011 for the course FIN 5514 taught by Professor Jaffe during the Three '11 term at University of New South Wales.
- Three '11