Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Unprofitable firms should borrow more than profitable ones. b. Safe firms should borrow more than risky ones. c. Rapidly growing firms should borrow more than mature firms. d. Increasing leverage increases firm value. e. All of these answers. 3. The Signaling theory for capital structure implies that: a. A company with poor future prospects should raise finance through equity is...
View Full Document

Ask a homework question - tutors are online