Which of the Following Makes This a True Statement? in This

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

A) minimize the firm's value by taking on as much debt as possible.
B) maximize the firm's value by taking on as much debt as possible.
C) maximize the firm's value by taking on as much equity as possible.
D) maximize the firm's value by financing only with debt.

Correct Answer:

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