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A saucer-shaped or U-shaped weighted average cost of capital curve results from the tax deductibility of interest, which results in the downward slope, followed
A saucer-shaped or U-shaped weighted average cost of capital curve results from the tax deductibility of interest, which results in the downward slope, followed by the recognition of potential financial distress costs, that cause the upward slope as the amount of debt ratio increases. True O False
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th edition
133507696, 978-0133507690
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