Use the information in the following table to make a suggestion concerning the proportion of debt that
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Benefit or (Cost) Tax shield Agency cost No Debt $ 0 -$10 25% Debt 50% Debt $10 -$ 5 -$ 3 $20 -$ 5 -$10 75% Debt $30 -$20 -$10 Financial distress cost-S 1
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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