In what ways are the capital structures of U.S. and non-U.S. firms different? How are they similar? 

Capital structure varies among companies in the same industry and across industry groups. A company’s choice of debt versus equity depends on many factors.

Discussion Questions:

1. In what ways are the capital structures of U.S. and non-U.S. firms different? How are they similar?

2. What important factors in addition to quantitative factors should a firm consider when it is making a capital structure decision?