A firms optimal capital structure

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A firm's optimal capital structure ______

Is generally a mix of 40% debt and 60% equity.

Exists when the debt-equity ratio is 0.5.

Is the debt-equity ratio that exists at the point where the firm's weighted after-tax cost of debt is minimized.

Is the debt-equity ratio that results in the lowest possible weighted average cost of capital and the largest firm value.

Reference no: EM13783748

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