Questions and Answers
What could result in significant changes in a firm's book value equity?
High profits or losses
Why might a firm's debt's market value change?
Due to a change in the general level of interest rates
What is a possible reason for a firm to deliberately take management actions to change its capital structure?
To move its actual capital structure towards its target
What is a potential outcome of a change in a firm's stock price?
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What is a possible way for a firm's capital structure to change without any deliberate management actions?
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