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The managing director of your firm is thinking aloud about the optimal capital structure. Being the Head of Finance in your company, you are required

The managing director of your firm is thinking aloud about the optimal capital structure. Being

the Head of Finance in your company, you are required to provide advice to the board of directors

regarding the optimal capital structure for your company which currently has zero debt and with a

corporate tax rate of 40per cent. Interpret your advice using both static theory and peck-order

theory in your own words (not more than 600 words)

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