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Static theory of capital structure

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Reference no: EM132515778

The Static Theory of Capital Structure says that firms will increase their debt until what happens?

Group of answer choices

  • The firm goes bankrupt.
  • The firm cannot borrow any more.
  • The value of the tax break on interest is offset by the disadvantage of financial distress.
  • The amount of debt exceeds the amount of equity.
  • None of the above.

Reference no: EM132515778

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