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22, 23 please ebookcentral-proquest.com.simsrad.net.ocs.mq.edu.au ID N253 Financial Management Quest book Central ProQuest Ebook Central Fundamentals of Corporate Finance edu.au/plugintle.php/- https @ If it declines the

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ebookcentral-proquest.com.simsrad.net.ocs.mq.edu.au ID N253 Financial Management Quest book Central ProQuest Ebook Central Fundamentals of Corporate Finance edu.au/plugintle.php/- https @ If it declines the project, what kind of cost will the Ellison Group incur? 16.22 Two theories of capital structure: Use the following table to make a suggestion for the rec- ommended proportion of debt that the company should utilise for its capital structure. 75% debt $30 $20 No debt 25% debt $10 -s 5 -S 3 50% debt $20 -$ 5 -$10 Benefit or (cost) Tax shield Agency cost Financial distress cost -$10 -s 1 -$10 Chapter 16 Capital structure policy 581 16.23 Two theories of capital structure: Problem 16.22 has reintroduced tax and information and transaction costs to the simplified Modigliani and Miller model. If the corporate tax rate for the company were to suddenly increase by a material amount, would the capital structure that maximises the company include less or more debt? 16.24 Two theories of capital structure: Describe the order of financial sources for managers who

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