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4. Suppose there are only corporate taxes in a capital market, then the firm value is maximized when: A. debt-equity ratio is equal to one.

4. Suppose there are only corporate taxes in a capital market, then the firm value is maximized when:

A. debt-equity ratio is equal to one.

B. debt-equity ratio is equal to zero.

C debt-equity ratio results in the lowest firm value.

D. the ratio of debt to (debt+equity) is equal to one.

E. None of the above is correct

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