question archive In the Concepts in Action video you watched this week, the speaker mentioned several challenges which led to his company's capital structure policy being different from what's discussed in traditional textbooks
In the Concepts in Action video you watched this week, the speaker mentioned several challenges which led to his company's capital structure policy being different from what's discussed in traditional textbooks
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In the Concepts in Action video you watched this week, the speaker mentioned several challenges which led to his company's capital structure policy being different from what's discussed in traditional textbooks. Which of these challenges do you think is the strongest reason why their capital structure policy is different and why do you think so?
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Answer:
The company's Tax exposure;The reason is that the tax rate might have been high hence bringing the difference in the capital structure policy.
