Company with the expected cash flows

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What capital structure is best for a company with the following expected cash flows.

Years

0

1

2

3

4

Cash Flows

 

 

 

$10,000

$80,000

  1. Debt: 0%, Equity: 100%
  2. Debt: 50%, Equity: 50%
  3. Debt: 100%, Equity: 0%

Reference no: EM133061079

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