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magine a world with perfect certainty, no costs of financial distress and where the corporate tax rate is 2 0 % . Epsilon LTD has
magine a world with perfect certainty, no costs of financial distress and where the corporate tax rate is Epsilon LTD has annual earnings before interest and taxes EBIT of Interest rates on its debt are and will be so forever. How much debt and equity in should it have if it wanted to achieve its optimal capital structure?
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