Tax rate will affect the optimal level of debt for a firm.
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Q9: Assume there are no personal or corporate
Q10: When EBIT is positive, increasing financial leverage
Q11: When a firm is operating at its
Q12: All else the same, taxes and bankruptcy
Q13: Suppose we wish to draw a graph
Q15: Ignoring financial distress costs, borrowing money decreases
Q16: When a firm is operating at its
Q17: Volatility of earnings will affect the optimal
Q18: When EBIT is positive, the effect of
Q19: It appears that, capital structures vary quite
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