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7. Financial distress cost exists in the firm, even in the case that the firm does not actually go into bankruptcy. [True / False] 8.

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7. Financial distress cost exists in the firm, even in the case that the firm does not actually go into bankruptcy. [True / False] 8. In the perfect capital market (but only with corporate taxes), the optimal capital structure is using debts as much as possible. [ True / False]

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