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W4: Capital StructureConsider the following statement:"Whether a company is domestic or international, the size of the companyis not important. No matter if it is a large corporation or a small...

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W4: Capital Structure



Consider the following statement:
"Whether a company is domestic or international, the size of the company
is not important. No matter if it is a large corporation or a small business,
what does matter is the capital structure - it always has and always
will." Do you agree? Why or why not? Provide examples to support your
position.

Answered 2 days After Nov 08, 2022

Solution

Rochak answered on Nov 10 2022
45 Votes
No, I do not agree that it ‘Does not matter if the organization is large or small the only thing which matters is the capital structure. I do not agree because the capital structure becomes more important for large corporations as they require more funds to operate and therefore, they should get to the optimal capital structure which will
ing down the overall cost of capital for the organization (Benito, Larimo, Narula & Pedersen 2002).
For a small organization, it is difficult to get debt...
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