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With taxes, but in the absence of bankruptcy costs, the optimal capital structure would be: A. 100% equity. B. 100% debt. C. completely insensitive to

With taxes, but in the absence of bankruptcy costs, the optimal capital structure would be:

A. 100% equity.

B. 100% debt.

C. completely insensitive to the mix of debt and equity.

D. 50% debt, 50% equity.

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