Question: The optimal capital structure will tend to include more debt for firms with: a. the highest total depreciation deductions. b. the lowest tax rate. c.

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

a. the highest total depreciation deductions. b. the lowest tax rate. c. high specificity of assets. d. low quarterly taxable income values. e. low volatility of earnings before interest and taxes.

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