Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In a firm where there is no risk of financial distress but there is an interest tax shield that can be used with 100% certainty
In a firm where there is no risk of financial distress but there is an interest tax shield that can be used with 100% certainty for the foreseeable future, the optimal capital structure will be _________________.
choices almost
100% equity almost
100% debt approximately
50% equity,
50% debt in this scenario,
an optimal capital structure does not exist
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started