Staying Safe In Manchester.....
ChatterBank2 mins ago
The consultant that I spoke to recently explained that some academic theorists have the idea that, if your objective is to maximise shareholder wealth, the debt to equity ratio does not matter. However, they did comment that this held in a world of no taxes. Even more strangely, the consultant said that in a world with tax, it is best to gear-up the company to as high a level as possible.
I don't know much about academic theory, but I do know that there are limits to the level of debt which is desirable.
I'm now more confused than ever! Can anyone help?
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