Question
If a firmincreasesits debt to a very high level, then thepositiveimpact of debt in aligning the interests of management with those of stockholderstends tobecome negative.
If a firmincreasesits debt to a very high level, then thepositiveimpact of debt in aligning the interests of management with those of stockholderstends tobecome negative. Explain why this occurs.
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
