According to the static theory of capital structure, a firm borrows up to which one of the following points point where the firm is financed totally with debt point where an additional dollar of debt would have a benefit exactly equal to its cost point where WACC equals the debt equity ratio point where the debt equity ratio equals 1 0

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According to the static theory of capital structure, a firm borrows up to which one of the following points? point where the firm is financed

According to the static theory of capital structure, a firm borrows up to which one of the following points?

		point where the firm is financed totally with debt
		point where an additional dollar of debt would have a benefit exactly equal to its cost
		point where WACC equals the debt-equity ratio
		point where the debt-equity ratio equals 1.0

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