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D. Define a new series starting with the next legacy number
Answer: C,D
NEW QUESTION: 2
In the absence of bankruptcy and agency costs and signaling actions, tax deductibility of interest payments implies that the optimal debt ratio should be:
A. 100%
B. 50%
C. none of these answers
D. zero
Answer: A
Explanation:
Explanation/Reference:
Explanation:
If there are no costs to increased debt, such as bankruptcy costs, and no signaling effects in a firm's decisions about the capital structure, then a firm would try to maximize the benefits of the debt shield i.e.
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NEW QUESTION: 3
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