Question
Do you agree with the following statement? Explain your a nswer. In a world with no taxes or finan cial distress costs, if a fir
Do you agree with the following
statement? Explain your a
nswer.
"In a world with no taxes or finan
cial distress costs, if a fir
m issues equity to pay off some of its
debt, the price of the shares will
increase because the shares
become less risky."
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Public Finance
Authors: Harvey S Rosen
7th Edition
0072876484, 978-0072876482
