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Consider: A) Value of the levered firm according to M&M with taxes B) Value of the unlevered firm according to M&M with taxes C) Value

Consider: A) Value of the levered firm according to M&M with taxes B) Value of the unlevered firm according to M&M with taxes C) Value of the firm according to static theory C > B > A A > C > B A > B > C B > A > C When the firm is at the optimal capital structure according to static theory

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