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The static theory of capital structure advocates that the optimal capital structure for a firm: A. Is independent of the firm's debt-equity ratio. B. Is

The static theory of capital structure advocates that the optimal capital structure for a firm:

A. Is independent of the firm's debt-equity ratio.

B. Is independent of the firm's tax rate.

C. Remains fixed over time.

D. Is highly dependent on a constant debt-equity ratio over time.

E. Equates the tax savings from an additional dollar of debt to the increased bankruptcy costs.

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