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  3. the following statements about the static theory o

The following statements about the static theory of capital structure are incorrect except 10 Multiple...

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The following statements about the static theory of capital structure are incorrect except 10 Multiple Choice points X 02:05:27 -pt Firm value is maximised where the debt-equity ratio equals 1. DF 25700 Firm value is decreased by the costs of financial distress When the tax rate is relatively low, the firms gets the largest benefit from using debt. The optimal capital structure is where the firm has 100 percent debt. The firm optimizes its tax shield on debt at the optimal level of debt

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