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How do bankruptcy and agency costs alter the effect of financial leverage on firm value? Question content area bottom Part 1 As the level of

How do bankruptcy and agency costs alter the effect of financial leverage on firm value?
Question content area bottom
Part 1
As the level of debt increases, the marginal costs associated with bankruptcy and agency costs
increase
stay the same
decrease
and eventually
catch up with
fall short of
the marginal benefit of additional debt.(Select from the drop-down menus.)

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