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A firm might finance its operations through equity or debt. Regarding this topic, answer the following questions. Answers can be written in Portuguese. a) What
A firm might finance its operations through equity or debt. Regarding this topic, answer the following questions. Answers can be written in Portuguese. a) What is the effect on shareholder's required return when a firm increase its debt ratio? b) Agency conflicts between shareholders and creditors can arise when a firm increase its debt ratio, explain how this conflict can be observed and how creditors can act to mitigate shareholder's misbehavior
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