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Question 18 (1 point) When bankruptcy is added to the M&M world of capital structure, which of the following statements is true as more debt
Question 18 (1 point) When bankruptcy is added to the M&M world of capital structure, which of the following statements is true as more debt is added to the financing mix of the company? The interest tax shield is a benefit to bond holders, although they bear increasing risk. The advantage of the tax shield starts to be offset by financial distress costs. All of the answers are correct. The WACC of the company starts to decrease past a certain level of debt
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