Identify the pair which does not affect the choice of capital structure :
Identify the pair which does not affect the choice of capital structure :
Solution
✅ Correct Option: 2
Factors affecting capital structure include cost of equity, cost of debt, floatation cost, risk consideration, ROI, flexibility, control, tax rate, cash flow position, etc. Goodwill is not a factor in determining capital structure. Hence the pair Cost of Equity and Goodwill is the odd one out.
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