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Incorrect Question 3 0 / 1 pts Consider this table for firm YY: Weight of Equity (E/(D+E)) 0% 40% 60% 90% WACC 12% 11% 13%

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Incorrect Question 3 0 / 1 pts Consider this table for firm YY: Weight of Equity (E/(D+E)) 0% 40% 60% 90% WACC 12% 11% 13% 19% What is the firm's Optimal Weight of Debt? Choose one answer and provide one reason. 60% 90% Because this produces the highest EV/PE ratio. 40% Because this minimizes the PV of the firm's future Free Cash Flows Because maximum WACC coincides with the firm's maximum growth potential Because this maximizes the PV of the firm's future Free Cash Flows

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