4. The capital structure is the mix of debt, preferred stock (if there is any), and common equity that is used to finance the firm's assets. The optimal capital structure is the capital structure that maximizes a stock's intrinsic value. Please read Section 13-4 (A-G) of our textbook on MindTap, and/or watch Video 1 of Ch13 from 5:49 to 9:57 (the end) posted on D2L, answer the following questions. a) Why does MM's theory with taxes lead to 100% debt? b) Explain what asymmetric information means, and how signals affect capital structure decisions. c) What is meant by reserve borrowing capacity and why is it important to firms? d) What is the pecking order hypothesis, and how does it influence firm's capital structures? 4. The capital structure is the mix of debt, preferred stock (if there is any), and common equity that is used to finance the firm's assets. The optimal capital structure is the capital structure that maximizes a stock's intrinsic value. Please read Section 13-4 (A-G) of our textbook on MindTap, and/or watch Video 1 of Ch13 from 5:49 to 9:57 (the end) posted on D2L, answer the following questions. a) Why does MM's theory with taxes lead to 100% debt? b) Explain what asymmetric information means, and how signals affect capital structure decisions. c) What is meant by reserve borrowing capacity and why is it important to firms? d) What is the pecking order hypothesis, and how does it influence firm's capital structures