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If MM's proposition II without taxes is true and no bankruptcy risk exists, how much debt will a company prefer if their cost of debt

If MM's proposition II without taxes is true and no bankruptcy risk exists, how much debt will a company prefer if their cost of debt is 6%, cost of equity is 10% and the corporate tax rate is 21%?

Select one:

A. 100%

B. 35%

C. 0%

D. 21%

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If MM's proposition II without taxes is true and no bankruptcy risk exists, how much debt will a company prefer if their cost of debt

If MM's proposition II without taxes is true and no bankruptcy risk exists, how much debt will a company prefer if their cost of debt is 6%, cost of equity is 10% and the corporate tax rate is 21%? Select one: A. 100% B. 35% C. 0% D. 21%

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Step: 3

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If MM's proposition II without taxes is true and no bankruptcy risk exists, how much debt will a company prefer if their cost of debt is 6%, cost of equity is 10% and the corporate tax rate is 21%?

Select one:

A. 100%

B. 35%

C. 0%

D. 21%