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Which of the following statements regarding the capital structure is CORRECT? According to the M&M theory under perfect market assumptions, the corporate strcture would not
Which of the following statements regarding the capital structure is CORRECT? According to the M&M theory under perfect market assumptions, the corporate strcture would not affect firm value. According to the static tradeoff model, a firm's optimal capital structure can be obtained by considering the debt-related costs only. The pecking order model predicts that the equity financing is more preferred to debt financing. A firm's optimal capital structure is one that maximizes both its expected EPS and stock price. According to the M&M theory, if only corporate taxes are considered, the optimal capital structure is one with 0% debt financing
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