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I cant explain exactly why. help me plz . 1.(10) In each of the theories of capital structure, the cost of equity increases as the

I cant explain exactly why. help me plz . image text in transcribed
1.(10) In each of the theories of capital structure, the cost of equity increases as the amount of debt increases. So why don't financial managers use as little debt as possible to keep the cost of equity down? After all, aren't financial managers supposed to maximize the value of a firm? oilk

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