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The Optimal capital structure is the minimal debt-to-equity ratio for a firm that maximizes its value. a.True b.False When we compute the cost of preferred

  1. The Optimal capital structure is the minimal debt-to-equity ratio for a firm that maximizes its value.

a.True

b.False

  1. When we compute the cost of preferred stock, we must always take into account that the dividends are growing.

a.True

b.False

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