Why does the assumption that the firm maintains a constant debt-equity ratio simplify the flow-to-equity calculation?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 15, 2024 01:00 AM

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Why does the assumption that the firm maintains a constant debt-equity ratio simplify the flow-to-equity calculation?

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Constant DebtEquity Ratio Simplifying FlowtoEquity Calculation When a firm maintains a constant debt...View the full answer

Corporate Finance

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