Capital structure designing has nothing to do with which of the following options?

Profitability

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Solvency

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Flexibility

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Transferability

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Solution

The correct option is A Profitability
Capital Structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its assets. There are very strong and positive relationships (over 0.5) between ROE and debt-to-equity.

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