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In a world with taxes and financial distress, when a firm is operating with the optimal capital structure the: debt-equity ratio will be minimized. weighted

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In a world with taxes and financial distress, when a firm is operating with the optimal capital structure the: debt-equity ratio will be minimized. weighted average cost of capital will be maximized. firm will be all-equity financed. required return on assets will be at its maximum point. overall benefits of debt have all been realized

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