Discussion
o Is there an easily identifiable debt-equity ratio that will maximize the value of the firm? Why or why not?
o What is the basic goal of financial management regarding capital structure?
o It is sometimes suggested that firms should follow a "residual" dividend policy. With such a policy, the main idea is that a firm should focus on meeting its investment needs and maintaining its desired debt-equity ratio. Having done so, any leftover, or residual income is paid out as dividends. What do you think would be the chief drawback to a residual dividend policy?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.