1. (15 points)
Capital structure overlooks that firms have different capital requirements across their life cycle. In
addition, the finance literature highlights various theoretical models that explain how the firms' life
stages influence capital struc cture decisions, such as the Pecking Order, Trade-Off, and Agency Cost
Theories. We like to know how firms in highly innovative industries have' different capital
requirements over their life cycle.
【題組】(2) (5 points) When firms are matured, they are more likely to use debt or equity financing, why?