Question: . Describe two variables that would influence where a firm optimal capital structure is relative to others ? 10. Why does the WACC curve increase

. Describe two variables that would influence where a firm optimal capital structure is relative to others?

10. Why does the WACC curve increase beyond some optimal level of debt? (If you are using the value of the firm curves in chapter 17 then why do these turn downward?)

11. What are some of the thing you can do to survive period of negative cash flow (assuming you are already at your debt capacity)?

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