What is a firms optimal capital structure according to the tradeoff theory?

a. 100% equity

b. 100% debt

c.50%equity and 50% debt

d.mix of debt and equity where the marginal cost of debt equals to the marginal cost of equity

e. mix of debt and equity where marginal benefit of debt equals to marginal benefit of equity

what is the firms optimal capital structure according to MM theory with corporate tax?

a. 100% equity

b. 100% debt

c.50%equity and 50% debt

d.mix of debt and equity where the marginal cost of debt equals to the marginal cost of equity

e. mix of debt and equity where marginal benefit of debt equals to marginal benefit of equity