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The business risk and the optimal capital structure of a firm, the tutor made the following statement: ??The main factors that affect the business risk are the ability to adjust output prices and operating leverage and business risk is the uncertainty regarding the net income of a firm. For a levered firm 40/60 debt to equity ratio is the optimal capital structure, which always maximizes the value of a firm. ??Do you agree or disagree with the tutor's statement? Briefly describe.

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