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The Combination of Debt Financing and Equity Financing That Maximizes

Question 23

Multiple Choice

The combination of debt financing and equity financing that maximizes a firm's value is known as its:


A) optimum degree of financial leverage (DFL) .
B) maximum weighted average cost of capital (WACC) .
C) maximum business risk.
D) optimal capital structure.
E) optimal indifference point.

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