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A factor that affects capital structure but NOT the cost of capital decision is:
ACost minimisation
BRisk tolerance
CControl consideration
DTax shield
Answer & Solution
Correct answer: C. Control consideration
1. Control is unique to the choice between equity (dilutes control) and debt (does not).
2. Risk and cost affect both decisions.
3. Hence Control is the capital-structure-specific consideration.
_Source: ICAI BoS CA Inter Paper 6A, Ch 5 "Financing Decisions — Capital Structure", §1_