Question: Please describe how changes in capital structure affect the value of the firm in a world with taxes and including the possible costs of financial

Please describe how changes in capital structure affect the value of the firm in a world with taxes and including the possible costs of financial distress. Is there an optimal capital structure for a firm? Please discuss. Electric utilities have an average 60% debt/total capitalization ratio whereas software firms have debt ratios close to zero. Why? Please explain the dividend policy that you would advise for a tech company to adopt that has very high business risk. How do you financially evaluate an acquisition

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