The more debt the firm issues, the higher the interest rate it must pay. That is one
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The more debt the firm issues, the higher the interest rate it must pay. That is one important reason why firms should operate at conservative debt levels.” Explain fully your position on this statement.
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In case increasing interest of debt it may reflect increasing risk that debt holders to bear What is relevant is the total cost of capital ie of debt and equity MM because of arbitrage total cost of c...View the full answer
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Related Book For 
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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