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A firm's optimal capital structure ______ is generally a mix of 40% debt and 60% equity. exists when the debt-equity ratio is 0.5. is the
A firm's optimal capital structure ______
is generally a mix of 40% debt and 60% equity. | ||
exists when the debt-equity ratio is 0.5. | ||
is the debt-equity ratio that exists at the point where the firm's weighted after-tax cost of debt is minimized. | ||
is the debt-equity ratio that results in the lowest possible weighted average cost of capital and the largest firm value. |
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