| http://www.w3.org/ns/prov#value | - 502 Part 4: Long-Term Asset and Liability Management E x h i b i t 17 . 1 Searching for the Appropriate Capital Structure Cost of Capital a l e s X r Debt Ratio o These ratios reflect the percentage of capital represented by debt and equity, respectively. f There is an advantage to using debt rather than equity as capital because the interest payments on debt are tax deductible.
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