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    Capital Structure As A Puzzle

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    Why has capital structure been described as a "puzzle"? Can you briefly discuss some of the reasons that have been put forward as answer to the puzzle.

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    Solution Preview

    The reason capital structure has been described as a puzzle is because there are so many different ways to finance a company and each piece affects the value of the others. The most common ways to finance a company are through equity with common stock, through debt such as ...

    Solution Summary

    The expert will discuss how a company's structure is comparable to a puzzle.