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Question five:A . What is capital structure? Explain the two school of capital structure with graph when necessary?B . Using the following data to provide

Question five:A

.

What is capital structure? Explain the two school of capital structure with graph when necessary?B

.

Using the following data to provide support for NOl approach, Net Operating income $

5000

Market value of debit is $

3000

8 %

Overall capitalization rate is

14 %

What if we increase the value of debit to $

4000

would it lower the WACC?Show all your calculations

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