c. When a company borrows, the expected costs of bankruptcy come out of the lenders pockets and

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c. When a company borrows, the expected costs of bankruptcy come out of the lenders’

pockets and do not affect the market value of the shares.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:02 AM

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c. When a company borrows, the expected costs of bankruptcy come out of the lenders pockets and

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Principles Of Corporate Finance

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