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

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

overall benefits of debt have all been realized.

debt

-

equity ratio will be minimized.

firm will be all

-

equity financed.

weighted average cost of capital will be maximized.

required return on assets will be at its maximum point.

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