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10. In a Miller-Modigliani framework, the economy is characterized by zero taxes and zero bankruptcy costs. The optimal capital structure tends toward: a. all equity

10. In a Miller-Modigliani framework, the economy is characterized by zero taxes and zero bankruptcy costs. The optimal capital structure tends toward:

a. all equity financing b. approximately 50 percent debt and 50 percent equity c. 90 percent debt financing d. none of the above; capital structure is irrelevant e. need more information.

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