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Modigliani and Miller developed a theory describing a firms optimal capital structure, ranging from a basic model assuming no corporate taxes, to an intermediate model

Modigliani and Miller developed a theory describing a firms optimal capital structure, ranging from a basic model assuming no corporate taxes, to an intermediate model including corporate taxes, and ultimately a model providing for costs of financial distress.

Give examples of the type of practical companies where each of these three models would be applicable. Justify your answer. The explanation of the model is NOT required.

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