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When a firm is using the optimal capital structure, this tends to maximize its common stock value because a . corporate federal taxes are minimized.
When a firm is using the optimal capital structure, this tends to maximize its common stock value
because
a corporate federal taxes are minimized.
b this forces the lowest possible discount rate of future cash flows.
c the optimal structure signals competent leadership to the market.
d the optimal structure means that assets of the company as a whole are properly valued.
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