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The optimal capital structure is the mixture of debt and equity which: I. Maximizes the market values of the firm's debt plus equity. II. Maximizes

The optimal capital structure is the mixture of debt and equity which: I. Maximizes the market values of the firm's debt plus equity. II. Maximizes the firm's weighted average cost of capital.

		I and II
		None of the above.
		II only
		I only

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