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Is there an easily identifiable debt-equity ratio that will maximize the value of a firm? Why or why not?

Question

Is there an easily identifiable debt-equity ratio that will maximize the value of a firm? Why or why not?

check_circleAnswer
Step 1

No, there is no such ratios.

Step 2

Justification:

For instance in great financial occasions it is simple for firms to turn out to be exceptionally utilized and thus amplify profits. Whereas at the same time leverage ends up indefensible once the monetary conditions turn terrible and the organization cost of debt is hi...

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