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    Introduction to Corporate Finance Study Set 3
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    Exam 21: Capital Structure Decisions
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    In a World with Corporate Taxes, No Personal Taxes and No
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In a World with Corporate Taxes, No Personal Taxes and No

Question 68

Question 68

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In a world with corporate taxes, no personal taxes and no risk of bankruptcy, what is a firm's ideal capital structure?

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Since debt has a tax benefit (the intere...

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