Talk:Trade-off theory of capital structure

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The graph on this page is incorrect. The top red line (the value of the firm excluding PV of costs of distress) should be asymptotic to a horizontal line that represents the maximum theoretical value of the firm at 99.99999% debt financing. The graph on this page shows this line incorrectly dipping down as D/E approaches 100%. Apauza 03:32, 10 August 2007 (UTC)