Which of the following is least likely an explanation for companies deviating from their target...

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Finance

Which of the following is least likely an explanation for companies deviating from their target capital structures?

It may sometimes make sense for the company to exploit short-term opportunities in a particular source of financing.

Management using book values of debt and equity for balance sheet purposes rather than market values.

Flotation costs may make it prohibitively expensive for the company to issue securities to maintain the target capital structure.

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