At the optimal capital structure,
A) K = (1 - λ) Kl + λ(1 - τ) i will be minimized.
B) The debt-equity ratio will be equal to the debt-to-value ratio.
C) K = (1 - λ) Kl + λ(1 - τ) i will be maximized.
D) None of the above
Correct Answer:
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