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