In a world of taxes and no bankruptcy, why is a company 's optimal capital structure all debt What happens when a company adds bankruptcy to the world of taxes with regard to the optimal capital structure ...

As more and more debt is added to the firm the valu ...

In a world of taxes and no bankruptcy, why is a company's optimal capital structure all debt?

Question:

In a world of taxes and no bankruptcy, why is a company's optimal all debt? What happens when a company adds bankruptcy to the world of taxes with regard to the optimal Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...