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    Principles of Managerial Finance
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    Exam 13: Leverage and Capital Structure
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    In General, a Firm's Theoretical Optimal Capital Structure Is That
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In General, a Firm's Theoretical Optimal Capital Structure Is That

Question 77

Question 77

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In general, a firm's theoretical optimal capital structure is that which balances the tax benefits of debt financing against the increase probability of bankruptcy that result from its use.

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