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Use the Following Information to Answer the Question(s)below

Question 56

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Use the following information to answer the question(s) below.
d'Anconia Copper is considering issuing one-year debt,and has come up with the following estimates of the value of the interest tax shield and the probability of distress for different levels of debt: Use the following information to answer the question(s) below. d'Anconia Copper is considering issuing one-year debt,and has come up with the following estimates of the value of the interest tax shield and the probability of distress for different levels of debt:   -If in the event of distress,the present value of distress costs is equal to $5 million,then the optimal level of debt for d'Anconia Copper is: A) $25 million. B) $50 million. C) $60 million. D) $70 million.
-If in the event of distress,the present value of distress costs is equal to $5 million,then the optimal level of debt for d'Anconia Copper is:


A) $25 million.
B) $50 million.
C) $60 million.
D) $70 million.

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