In a world with taxes and financial distress, when a firm is operating with the optimal capital structure the:

	A.	firm will be all-equity financed.
	B.	weighted average cost of capital will be maximized.
	C.	required return on assets will be at its maximum point.
	D.	increased benefit from additional debt is equal to the increased bankruptcy costs of that debt.
	E.	debt-equity ratio will be less than optimal.