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Q38 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! In calculating the optimal debt/equity ratio for a company, managers should consider only effects that

Q38 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!!

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In calculating the optimal debt/equity ratio for a company, managers should consider only effects that they can estimate relatively easily, such as taxes, and should not be influenced by less likely possibilities such as a stock market crash, a lawsuit or a change in regulation, even though such events may lead to financial distress. True False

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