Question: I. The debt - equity ratio will be optimal. II . The weighted average cost of capital will be at its minimal point. III. The
I. The debtequity ratio will be optimal.
II The weighted average cost of capital will be at its minimal point.
III. The required relurn on assets will be at its maximum point.
IV The increased benefit from additional debt will equal the increased barknuptcy costs of that debel
Multiple Choice
I, II and IV only
II III, and IV only
I and II only
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