Question
According to M&M proposition II, cost of equity increases with leverage. Cost of debt will also increase with leverage given higher probability of default. As
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According to M&M proposition II, cost of equity increases with leverage. Cost of debt will also increase with leverage given higher probability of default. As both cost of equity and cost of debt are increasing when leverage increases, does it mean that leverage is bad for the firm value?
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Crypto Finance Law And Regulation
Authors: Joseph Lee
1st Edition
0367086611, 978-0367086619
