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14. MNO Group currently has RM50,000,000 of liabilities and common equity in combination. The firm has no Preferred Stock. After careful evaluation, the CFO constructed

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14. MNO Group currently has RM50,000,000 of liabilities and common equity in combination. The firm has no Preferred Stock. After careful evaluation, the CFO constructed the following table to show the CEO the effect of changing the firm's capital structure: According to this information, what is MNO's optimal capital structure? A. 20% debt; 80% equity B. 40% debt; 60% equity C. 60% debt; 40% equity D. 50% debt, 50% equity

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