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Shz World currently uses no debt, but it is evaluating its capital structure. What capital structure should the company choose? a. Remain at 0% debt
Shz World currently uses no debt, but it is evaluating its capital structure. What capital structure should the company choose?
a. Remain at 0% debt because interest payments destroy a companys value.
b. Remain at 0% debt, but add 10% preferred stock for diversification.
c. Choose 50% debt, 50% equity for a more balanced approach.
d. Choose 100% debt since interest is tax-deductible.
e. Choose whatever combination it believes will maximize the value of the firms stock.
thank you
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