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What is the capital structure that maximizes firm value? More debt than equity More equity than debt The combination that results in the minimal WACC.

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What is the capital structure that maximizes firm value? More debt than equity More equity than debt The combination that results in the minimal WACC. The combination that results in zero MCC. Which of the following statements about leverage is not true? Leverage can help the firm Leverage can hurt the firm If EBIT decreases, financial leverage will magnify the change in net income Managers that are risk averse are likely to prefer lower amounts of leverage All of the above are true

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