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If a firm is a non-profit firm and, as a consequence, it does not pay taxes, is the advantage of debt finance larger or smaller

If a firm is a non-profit firm and, as a consequence, it does not pay taxes, is the advantage of debt finance larger or smaller than for an identical firm subject to corporate taxes?

What is the asset substitution problem? Why is it a problem?

What is the underinvestment problem? Why is it a problem?

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