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According to Modigliani and Miller Proposition II and assuming no corporate taxes, the optimal capital structure is most likely achieved: A. only when debt approaches

According to Modigliani and Miller Proposition II and assuming no corporate taxes, the optimal capital structure is most likely achieved:

A. only when debt approaches 100 percent of the total capital structure.

B. at any mix of equity and debt financing.

C. at the sole point where the rising cost of equity exactly offsets the benefit of using cheaper debt.

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