Question: Think back to Chapter 13 where we considered the relationship between capital structure and the cost of capital. I f the WACC-versus-debt ratio plot was

Think back to Chapter 13 where we considered the relationship between capital structure and the cost of capital. I f the WACC-versus-debt ratio plot was shaped like a sharp V, would this have a different implication for the importance of setting dividends according to the residual policy than if the plot was shaped like a shadow bowl (a flattened U)?

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