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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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
