Question: The optimal capital structure will tend to include less debt for firms with: a) high volatility of earnings before interest and taxes. b) high quarterly

The optimal capital structure will tend to include less debt for firms with:

a) high volatility of earnings before interest and taxes.

b) high quarterly taxable income values.

c) the highest tax rate.

d) the lowest total depreciation deductions.

e) low specificity of assets.

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