The addition of bankruptcy costs in Modigliani and Miller's work suggests that the cost of capital will eventually increase as more debt is issued.

Name: The addition of bankruptcy costs in Modigliani and Miller's work suggests that the cost of capital will eventually increase as more debt is issued.
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Modigliani and Miller's work shows that additional bankruptcy costs will increase the overall cost of capital, which means that companies issuing more debt will eventually face higher costs of borrowing.

The Addition of Bankruptcy Costs in Modigliani and Miller's Work