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In the tradeoff model, increasing use of debt results in increasing firm value because of the value of the tax shield ( interest tax shelter
In the tradeoff model, increasing use of debt results in increasing firm value because of the value of the tax shield interest tax shelter higher profitability of earning assets reduction in operating costs from higher efficiency lack of corporate taxes
In the tradeoff model, increasing use of debt results in increasing firm value because of the value of the tax shield interest tax shelter
higher profitability of earning assets
reduction in operating costs from higher efficiency
lack of corporate taxes
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