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Ch15-5.) Capital Structure and Nonmarketed ClaimsSuppose the president of the company in the previous problem stated that the company should increase the amount of debt

Ch15-5.) Capital Structure and Nonmarketed ClaimsSuppose the president of the company in the previous problem stated that the company should increase the amount of debt in its capital structure because of the tax-advantaged status of its interest payments. His argument is that this action would increase the value of the company. How would you respond?

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