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cassandra_dan cassandra_dan
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In a world with corporate taxes and bankruptcy costs,

▸ the firm should maximize its value by maximizing the firm's debt.

▸ the firm's value is unaffected by capital structure.

▸ the firm should borrow to the point where the marginal benefits of debt equal the marginal costs.

▸ the firm cannot make a decision about the optimal capital structure with the existing information.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
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dm408dm408
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cassandra_dan Author
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2 months ago
Thanks
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Thank you, thank you, thank you!
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2 hours ago
Thanks for your help!!
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