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Case 18 RN TEMPS, INC CAPITAL STRUCTURE Tiffany's second concern: A. What is the potential impact of increasing amounts of de financing on the firm's

Case 18

RN TEMPS, INC

CAPITAL STRUCTURE

Tiffany's second concern:

A. What is the potential impact of increasing amounts of de financing on the firm's stock price and CCC. Graph the stock price and CCC at different levels of debt financing and interpret the relationships among them.

B. Based on your results so far, what is the optimal capital structure?

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