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If we only have corporate taxes in a capital market, what is the optimal leverage ratio, debt value/(debt value+equity value)? A. 1% B. 0% C.

If we only have corporate taxes in a capital market, what is the optimal leverage ratio, debt value/(debt value+equity value)?

A. 1%

B. 0%

C. 50%

D. 100%

E. No optimal capital structure choice

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