Quiz Ch 16 – Borrowing and Financial Distress Costs

Fundamentals of Corporate Finance

Ross, Westerfield, and Jordan

13th Edition

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How does ________ suggest that a company should borrow in relation to the marginal benefit of the interest tax shield and the marginal expense of financial distress costs?

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  • Search Terms: a) ________, a according benefit borrows capital company costs. debt derived distress equal expense financial from i ii in increase increased interest is just m&m marginal markets of open pecking-order point proposition resulting shield static structure b) tax taxes c) taxes d) the theorem theory theory e) to up where with
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