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Why should stockholders care about maximizing firm value rather than just the value of the equity? How does financial leverage affect firm value and weighted
- Why should stockholders care about maximizing firm value rather than just the value of the equity?
- How does financial leverage affect firm value and weighted average cost of capita (WACC) without taxes? With taxes? With Bankruptcy cost?
- Explain the tradeoff, signaling, agency cost, and pecking order theoriesof capital structure.
- Explain why share repurchases are an alternative to dividends, and why mightinvestors prefer them?
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