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As a firm takes on more debt, its probability of bankruptcy ________. other factors held constant, a firm whose earnings are relatively volatile faces a
As a firm takes on more debt, its probability of bankruptcy ________. other factors held constant, a firm whose earnings are relatively volatile faces a ________ chance of bankruptcy. Therefore, when other factors are held constant, a firm whose earnings are relatively volatile should use ________ debt than a more stable firm. When bankruptcy costs become more important, they ______ the tax benefits of debt
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