We have discussed three basic theories of capital structure (irrelevance, pecking order, and static tradeoff).;a. What is the difference in the way managers will behave regarding their capital structure decisions in each of these theories. Explain fully.;b. Describe in detail how the static tradeoff theory works and what management will consider when making the capital structure decision in this context.
Paper#21130 | Written in 18-Jul-2015Price : $17