什么是financial distressed cost?

问题如下：

The view that debt financing is highly advantageous and the optimal capital structure is 100% debt is consistent with:

选项：

A.

MM without taxes.

B.

MM with taxes and financial distress costs

C.

MM with taxes and no financial distress cost

解释：

C is correct.

MM with taxes and no distress cost leads to the conclusion that the optimal capital structure is 100% debt. This is because tax law favors debt financing over equity financing since the interest expense on debt financing is tax deductible. Ignoring financial distress costs, the value of the company increases with increasing levels of debt. The value of the levered firm (VL) is greater than that of the unlevered one (VU) by the amount equal to the tax rate multiplied by the level of debt (tD).