Assume a firm's debt to equity ratio is currently below its industry average. Increasing it to the industry average can represent a source of value.

Name: Assume a firm's debt to equity ratio is currently below its industry average. Increasing it to the industry average can represent a source of value.
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Increasing a firm's debt to equity ratio to the industry average can provide them with tax benefits and a lower cost of capital, thereby increasing the value of the firm.

Assume a Firm's Debt to Equity Ratio Is Currently Below