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According to the trade-off theory, a firms optimal capital structure: is the debt-equity ratio that exists at the point wherplease somebody help me answer this, the assignment is due in 1h

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Answer #1

The correct answer is Option B

The trade theory shows the optimal level of the debt and the equity portion that the firm should have in order to reduce the weighted average cost of capital to the minimum because it will help the firm to increase the value of the firm by reducing the costs.

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