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3) When a company takes on more and more debt, _____. a) the value of the firm will decrease consistently b) the cost of financial

3) When a company takes on more and more debt, _____. a) the value of the firm will decrease consistently b) the cost of financial distress will eventually be offset by the benefits of debt c) the value of the firm will increase consistently d) the benefits of debt will eventually be offset by the cost of financial distress e) the cost of equity increases while the cost of debt decreases f) Other, specify

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