16.6 The conflicts are costly because they lead to poor investment decisions. The more debt the firm

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16.6 The conflicts are costly because they lead to poor investment decisions. The more debt the firm has today, the greater the chance of poor decisions in the future. Investors foresee this possibility and reduce today's market value of the firm.

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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Question Posted: Jul 31, 2024 12:02 PM

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16.6 The conflicts are costly because they lead to poor investment decisions. The more debt the firm

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Fundamentals Of Corporate Finance

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