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(5 points) True or False. In Modigliani Miller model with corporate taxes, but no bankruptcy costs, i.e., Case II, the optimal capital structure is not

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(5 points) True or False. In Modigliani Miller model with corporate taxes, but no bankruptcy costs, i.e., Case II, the optimal capital structure is not 100% debt, because, at some point, the interest that you owe on the debt will exceed the maximal value of EBIT, and there would be no more tax benefits of additional debt

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