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In the absence of taxes, the capital structure chosen by a firm doesn't really matter because of:_____.

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khuranashilpa76

In the absence of taxes, the capital structure chosen by a firm doesn't really matter because of of homemade leverage.

The Leverage does, but, permits an investor to undo changes to a company's capital shape that they do not trust. for instance, if an enterprise that an investor owns stocks in comes to a decision to raise capital via debt. An agency can adjust its private portfolio leverage to keep the favored leverage.

It is when one uses borrowed budget (debt) for investment in the purchase of belongings within the hopes that the income of the new asset or capital advantage would surpass the value of borrowing there are fundamental forms of leverage:

Monetary and working. To increase economic B leverage, a company may additionally borrow capital via issuing constant-earnings securities or by using borrowing money at once from a lender.

Learn more about leverage here:

https://brainly.com/question/14002613

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