Question

There is no difference of opinion on the relationship between capital structure and value of the firm. True false

Answer 1

Answer:

People travel from one place to another and also transport food stuff by different ways. They mostly use animals such as donkey, camel and other for their comfort. ... Now days different highly modern and advanced transport system is established for the safety of human beings which is also easy,cheap and take short time.

Answer 2

“There is ‘no difference of opinion’ on the relationship between ‘capital structure’ and value of the firm” is a TRUE statement.

Explanation:

• The ‘capital structure’ of the firm refers to its amount of ‘debt and equity’ financing.  

• The ‘capital structure’ is an important aspect since it affects the costs of the capital and the market value of the firm.  

• The ‘market value’ of the firm is the total investment of its creditors and shareholders.  

• The easiest way ways to evaluate the ‘value of a firm’ is by ‘adding the market value’ of its minority interest, equity, and debt.

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