More debt in the capital structure provides managers with an incentive to maximise cash flows, but also makes them want to take on negative NPV projects.
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Q12: M&M Proposition 1 assumes that the mix
Q13: Minimising the cost of a company's financing
Q14: Increasing a company's outstanding equity will increase
Q15: With no debt, the WACC is the
Q16: Direct insolvency costs are considered small when
Q18: If a company has debt and pays
Q19: Insolvency and agency costs both act as
Q20: A financial restructuring can change the value
Q21: The optimal capital structure of a company:
A)
Q22: Which of the following is a reason
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