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Explain the trade-off theory

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Reference no: EM133056013

Briefly answer the following questions:

a) Explain the trade-off theory and the concept of optimal capital structure.

b) Explain the Modigliani and Miller (M&M) Capital Structure Theorem.

c) At the most basic level, if a firm's WACC is 15%, what does this mean?

Reference no: EM133056013

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