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The target capital structure of a firm is the capital structure that a. minimizes the operating risk of the firm's assets. b. maximizes the tax

The target capital structure of a firm is the capital structure that

a. minimizes the operating risk of the firm's assets.

b. maximizes the tax shield created by debt.

c. minimizes the default risk of long-term debt.

d. maximizes the price of the firm's stock.

e. none of the above.

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