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A firm is in a world with (a) taxes, (b) costs of financial distress, (c) agency conflicts between debt and equity holders, and (d) agency

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A firm is in a world with (a) taxes, (b) costs of financial distress, (c) agency conflicts between debt and equity holders, and (d) agency conflicts between managers and equity holders. Based on what we have discussed in class, which of these factors is most likely to hurt firm value if a firm decides to increase its leverage? a and b all of them a, b, and c C and d b and c

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