Is financial flexibility always good for shareholders

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Reference no: EM131243106

1. Why do our theories of capital structure explain relatively little of firms' capital structures?

2. If firms fail to readjust their capital structure, does this mean that learning about capital structure theories is a waste of your time?

3. Managers frequently state that they like sound finances with plenty of financial flexibility. Is financial flexibility also always good for shareholders?

Reference no: EM131243106

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