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Which of the following statements regarding the capital structure is NOT CORRECT? Group of answer choices According to the M&M theory under perfect market assumptions,

Which of the following statements regarding the capital structure is NOT CORRECT?

Group of answer choices

According to the M&M theory under perfect market assumptions, the value of a firm with no debt is less than that with 100% debt.

According to the M&M theory, if only corporate taxes are considered, the optimal capital structure is one with 100% debt financing.

The pecking order model predicts that the equity financing is less preferred to debt financing.

According to the static tradeoff model, a firm's optimal capital structure is one that balances the benefits and costs of its debt financing.

A firm's optimal capital structure is one that minimizes its WACC but maximizes its stock price.

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