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The static theory advocates borrowing to the point where: Group of answer choices the cost of equity is equal to the interest tax shield the

The static theory advocates borrowing to the point where:

Group of answer choices

the cost of equity is equal to the interest tax shield

the tax benefit from debt is equal to the cost of the increased probability of financial distress

the debt-equity ratio equals 1.0

the pre-tax cost of debt is equal to the cost of equity

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