Question: Increasing debt will do all the following except Disadvantage: gives decision - making control to largest debtholders Disadvantage: increase expected bankruptcy costs. Advantage: give management

Increasing debt will do all the following except
Disadvantage: gives decision-making control to largest debtholders
Disadvantage: increase expected bankruptcy costs.
Advantage: give management stronger incentive to work harder
Disadvantage: reduce financial flexibility.
Advantage: increase the tax benefit (shield).
Increasing debt will do all the following except

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