What type of capital structure should a firm choose and why? In you answer, be sure to include capltal structure fallacies and their effects on a firm's decision.

Define and discuss MM Proposition I with its implications, and the roles of homemade leverage and the Law of One Price in the development of the proposition.

What is leveraged recapitalization and what effects does it have on the value of equity?

Define the optimal fraction of debt and the growth rate of a firm. What is the relationship between the two?

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