Question: True or False ( Please give a proof or explanation if it is true and give aAccording to the tradeoff theory of capital structure, what
True or False Please give a proof or explanation if it is true and give aAccording to the tradeoff theory of capital structure, what is the optimal debt ratio among the choices
under the existence of bankruptcy cost and corporate tax.
a
b
c
d Does not matter
WACC of a:
WACC of b:
WACC of c: counterexample if it
is false.
a Each maximum flow defines a unique minimum capacity cut.
b Each minimum capacity cut defines a unique maximum flow.
c If all capacities are odd then there is a maximal flow such that is odd for all
edges;
d If all capacities are even then there is a maximal flow such that is even for all
edges.
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