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25. If tax rate decreases, holding all other factors constant, which of the following statement is correct a)The effect of tax shield decreases. b)Firm should

25. If tax rate decreases, holding all other factors constant, which of the following statement is correct

a)The effect of tax shield decreases.

b)Firm should use more leverage compared before.

c)Since tax rate decreases, the capital structure becomes irrelevant.

d)The optimal capital structure will stay the same.

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