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12-11 QRA Company has $300 million in total liabilities plus common equity. The firm has no preferred stock. QRA's senior management constructed the following table

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12-11 QRA Company has $300 million in total liabilities plus common equity. The firm has no preferred stock. QRA's senior management constructed the following table to illustrate the effect of changing the firm's capital structure. Based on this information, which option is QRA's optimal capital structure? Explain your answer. (LO 12-2)

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