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Managers should select the capital structure that A. maximizes the value of the firm. B. has no debt. C. is fully levered. D. minimizes taxes. E. produces the highest current level of net income.
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Managers should select the capital structure that A. maximizes the value of the firm. B. has no debt. C. is fully levered. D. minimizes taxes. E. produces the highest current level of net income.

User Brahmakumar M
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2 votes

Answer:

A. maximizes the value of the firm.

Step-by-step explanation:

Managers should select the capital structure that "A", maximizes the value of the firm. He may select a capital structure with full debt or no debt, based on certain fact and conditions.

Capital Structure may result in Minimum taxes and generate Current level of Income but the most important is to maximize the value of the firm.

User Smarr
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