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How is a bankruptcy's impact on leverage determined? Depends on how incorporating debt into the target capital structure can add value Depends on the likelihood
How is a bankruptcy's impact on leverage determined?
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Depends on how incorporating debt into the target capital structure can add value
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Depends on the likelihood of its occurrence and the costs associated with the procedure, should it occur
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Determining target capital structure is the use of leverage as a signal to outside shareholders and analysts
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Determining how managers decide if the conditions are right for debt signaling
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