Question: The optimal firm value is achieved when the: Present value of the bankruptcy cost is minimized. Weighted average cost of capital is minimized. Debt-equity ratio

The optimal firm value is achieved when the:

Present value of the bankruptcy cost is minimized.

Weighted average cost of capital is minimized.

Debt-equity ratio is maximized.

Total net gain from leverage is equal to zero.

The interest tax shield on debt is maximized.

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