The optimal capital structure is the mixture of debt and equity which maximizes the market price of the firm's bonds.
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Q52: When taxes are factored in, debt financing
Q53: The interest tax shield has no value
Q54: A reduction in tax rates will tend
Q55: As financial risk increases so too does
Q56: The interest tax shield has no value
Q58: A large depreciation tax deduction will tend
Q59: Financial risk applies to levered firms but
Q60: According to M&M Proposition II without taxes,
Q61: Foregone profitable projects due to debt restrictions
Q62: In order to avoid bankruptcy, management sometimes
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