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bIf a company has the optimal amount of debt, then the: Multiple Choice value of the firm is equal to VL + TCD . direct

bIf a company has the optimal amount of debt, then the:

Multiple Choice

value of the firm is equal to VL

+

TCD

.

direct financial distress costs must equal the present value of the interest tax shield.

debt

-

equity ratio is equal to

1 .

value of the levered company will exceed the value of the unlevered company.

company has no financial distress costs.

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