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Explain how a company can incur costs of financial distress without ever going bankrupt. What is the nature of these costs? Further, why might it

Explain how a company can incur costs of financial distress without ever going bankrupt. What is the nature of these costs? Further, why might it make sense for a mature, slow-growth company to have a high debt ratio? How does the M&M Theory of Irrelevance play a role in a companys decision regarding its capital structure? Is M&M applicable in the real world or is it only relevant in the realm of academia?

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