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please explain your answer, thank you 19. The representative investor's personal tax on interest earnings and dividend earnings are tD=36% and tE=20%, respectively. If the

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please explain your answer, thank you
19. The representative investor's personal tax on interest earnings and dividend earnings are tD=36% and tE=20%, respectively. If the corporate tax rate is 25%, what is the optimal amount of debt for the firm? Assume that the firm operates under the assumptions of M&M with taxes. a) As much debt as possible b) No debt at all c) The company is indifferent regarding the amount of debt d) 50% debt

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