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You are considering an investment in a firm that makes a great product and has excellent long-term potential. Unfortunately, the manger of the firm, Shaky-Joe,
You are considering an investment in a firm that makes a great product and has excellent long-term potential. Unfortunately, the manger of the firm, Shaky-Joe, is a little troublesome. He is well known for throwing large parties and traveling to golf tournaments. The firm is currently financed with 90 percent equity and 10 percent debt. Explain how you might wish to change the company's capital structure to handle Shaky-Joe.
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