20 Capital Structure and Non-marketed Claims Suppose the chief executive of the company in the previous problem

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20 Capital Structure and Non-marketed Claims Suppose the chief executive of the company in the previous problem stated that the company should increase the amount of debt in its capital structure because of the tax-advantaged status of its interest payments. His argument is that this action would increase the value of the company. How would you respond?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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