Borrowing money and paying out a special dividend to shareholders is an example of the asset substitution problem.
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Q26: Dividends reduce the value of lender claims,
Q27: Without debt in the capital structure, there
Q28: More profitable firms have less debt, which
Q29: The optimal capital structure of a firm
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Q30: Industries with large amounts of tangible assets
Q32: The weighted average cost of capital (WACC)
Q33: The trade-off theory of capital structure states
Q34: Firms have a difficult time selling equity
Q35: Under the pecking order theory, debt is
Q36: A firm's capital structure is the mix
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