Question: The optimal capital structure will tend to include more debt for firms with: a. the lowest tax rate. b. low quarterly taxable income values. c.

  1. The optimal capital structure will tend to include more debt for firms with:

a.

the lowest tax rate.

b.

low quarterly taxable income values.

c.

the highest total depreciation deductions.

d.

high specificity of assets.

e. low volatility of earnings before interest and taxes

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