1) What is the 'optimal capital structure?' What sorts of ethical considerations can raise issues...

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1) What is the 'optimal capital structure?' What sorts of ethical considerations can raise issues about it, if losses can be socialized through government capital? 2) What are the two elements of the Miller- Modigliani theory? What kind of world to they relate to, and why might that seem to imply that their 'irrelevance' theorem is itself irrelevant? 3) What are the three main 'real-world' factors that undermine the main assumption of the Miller- Modigliani theorem? 4) Compare and contrast the "trade-off" theory of capital structure to the "pecking order" theory of capital structure

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