Question
when firms issue more debt, the present value of the tax shield on debt __________ while the present value of financial distress costs _________. decrease:
when firms issue more debt, the present value of the tax shield on debt __________ while the present value of financial distress costs _________.
decrease: decrease
decrease:increase
increase: increase
increase: decrease
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Get StartedRecommended Textbook for
International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
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