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A valuable firm will tend to: a. see its stock price increase if it issues debt beyond its optimal debt level. b. issue more debt
A valuable firm will tend to: a. see its stock price increase if it issues debt beyond its optimal debt level. b. issue more debt than a less valuable firm of comparible size. c. reduce its debt level as a positive signal for the firm. d. issue debt, but only on a temporary basis purely to fool investors regarding the firm's value. e. see its stock price increase when it announces an exchange offer that decreases its leverage. |
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