Question
Q17.31 M &M states that, in a perfect market, although both debt and equity become riskier due to an increase in the firm's leverage, both
Q17.31 M&M states that, in a perfect market, although both debt and equity become riskier due to an increase in the firm's leverage,
both the firm's value and risk remain exactly the same. conceptually, what would it take for the firm to become worth more and/or be safer even when both debt and equity become riskier due to an increase in the firm's leverage?
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick, Ayako Yasuda
3rd Edition
1119490111, 978-1119490111
