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Although corporations increase the amount of debt in order to take a full advantage of tax benefit, why do most of companies not fully use
Although corporations increase the amount of debt in order to take a full advantage of tax benefit, why do most of companies not fully use 100% debt?
The higher debt portion, the higher chance of bankruptcy could occur
none of the above is correct
debt is more expensive than equity or preferred stock
all of the above is correct
firms Could lose their comparative advantage to their competitors
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