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With considerations of both taxes and bankruptcy costs, the capital structure that maximizes the value of a firm also: A. maximizes the present value of

With considerations of both taxes and bankruptcy costs, the capital structure that

maximizes the value of a firm also:

A. maximizes the present value of the tax shield on debt.

B. maximizes the value of the debt.

C. maximizes the value of the unlevered firm

D. minimizes financial distress costs.

E. minimizes the cost of capital.

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