Question
If a company decides to finance a project with debt capital, what factors should it take into consideration before deciding on the source of the
If a company decides to finance a project with debt capital, what factors should it take into consideration before deciding on the source of the debt capital?
Discuss how the decision to finance the project with debt capital will affect the return to equity shareholder taking into consideration Modigliani and Miller (M@M) irrelevance proposition argument.
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
