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Debt to equity ratio is different across industries. Internet software companies have 3.32%, while general utilities have 67.24%. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/dbtfund.htm a) What are the costs of

Debt to equity ratio is different across industries. Internet software companies have 3.32%, while general utilities have 67.24%. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/dbtfund.htm

a) What are the costs of financial distress?

b) Could the application of tax shield explain the difference between the 2 industries above? Briefly comment.

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