Question: FINANCIAL MANAGEMENT please help answer thoroughly Explain using appropriate graph, how a company can find optimal capital structure according to Modigliani and Miller theory? Describe

FINANCIAL MANAGEMENT

please help answer thoroughly

  1. Explain using appropriate graph, how a company can find optimal capital structure according to Modigliani and Miller theory? Describe the cost and benefit of using debt for a company to find the aforementioned optimal capital structure!
  2. Why is the use of debt for financing referred to as financial"leverage"? what does it mean and its effect to company?

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