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Assume that an economy exists where there are no taxes, there are no additional costs when a firm gets into financial distress, there is no

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Assume that an economy exists where there are no taxes, there are no additional costs when a firm gets into financial distress, there is no asymmetho inlonnaton. between investors and corporate management, and management is well-incentwized nuch that it in alwayt working hard to moximire inarsbiider valie. In such an economy, a firm exists that has no debt in its capital structure. This firm's value is likely to go up if itt issues debt and buys back shares of stock. True False

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