=+The company wants to shift the capital structure by increasing debt and decreasing common stock, in order

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=+The company wants to shift the capital structure by increasing debt and decreasing common stock, in order to maximize EPS or shareholder value. The market has assigned four different debt ratios that are shown in the following table, along with an estimate, for each ratio, of the corresponding required interest rate on all debt.

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Principles Of Managerial Finance

ISBN: 9781292261515

15th Global Edition

Authors: Chad J. Zutter, Scott Smart

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