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In a world with corporate taxes only, but no bankruptcy costs, which of the following statements is true? Group of answer choices the optimal capital
In a world with corporate taxes only, but no bankruptcy costs, which of the following statements is true?
Group of answer choices
the optimal capital structure is the one that is totally financed with equity.
the value of firm stays the same with leverage because the weighted average cost of capital stays the same.
the value of the firm increases as total debt increases.
the capital structure of the firm does not matter because investors can use homemade leverage.
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