Maximize the firms value by financing only with debt


Which of the following makes this a true statement? In this slightly more realistic world with corporate taxes, managers can:

Maximize the firm's value by financing only with debt.

Maximize the firm's value by taking on as much debt as possible.

Minimize the firm's value by taking on as much debt as possible.

Maximize the firm's value by taking on as much equity as possible.

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Financial Management: Maximize the firms value by financing only with debt
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