Use the Following Information to Answer the Question(s)below

question 71

Multiple Choice

Use the following information to answer the question(s) below.
d'Anconia Copper is considering issuing one-year debt,and has come up with the following estimates of the value of the interest tax shield and the probability of distress for different levels of debt:
-If in the event of distress,the present value of distress costs is equal to $25 million,then the optimal level of debt for d'Anconia Copper is:

• A)$50 million.
• B)$60 million.
• C)$70 million.
• D)$80 million.

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Definitions:

Society

A group of individuals involved in persistent social interaction, or a large social group sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.

Respite Care

Temporary care provided to patients or clients, intended to give relief to their usual caregivers.

Caregivers

Caregivers are individuals who provide direct care and support to people with health-related needs or disabilities, including family members or professional health care providers.

Skilled Nursing Homes

Residential facilities that provide 24-hour medical care and supervision for individuals with chronic health conditions or recovering from illness or surgery.