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According to the Static-Tradeoff theory, the optimal capital structure for a company is when: financial distress or default risk is entirely absent. the company has
According to the Static-Tradeoff theory, the optimal capital structure for a company is when: financial distress or default risk is entirely absent. the company has at least 50% debt in its capital structure. the benefits of debt is at the greatest point, thereby minimizing WACC. the marginal cost of capital is declining
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