Multiple Choice
Which one of the following conditions exists at the point where a firm maximizes its value?
A) The tax benefit from an additional dollar of debt is zero.
B) Financial distress costs are equal to zero.
C) The debt-equity ratio is 1.0.
D) WACC is minimized.
E) The cost of equity is minimized.
Correct Answer:
Verified
Correct Answer:
Verified
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