Question: The best capital structure is the one that Multiple Choice O sets the debt-to-equity ratio equal to 1. O ignores the false comfort of financial
The best capital structure is the one that Multiple Choice O sets the debt-to-equity ratio equal to 1. O ignores the false comfort of financial flexibility. O results in the lowest possible financial distress costs. O maximizes expected cash flows. trades off the tax disadvantage of debt against the signaling effects of equity
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