Real estate purchases are often financed with at least 80% debt. Most corporations, however, have less than

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Real estate purchases are often financed with at least 80% debt. Most corporations, however, have less than 50% debt financing. Provide an explanation for this difference using the tradeoff theory?

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Corporate Finance

ISBN: 978-0134083278

4th edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Nov 24, 2016 08:12 AM

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Real estate purchases are often financed with at least 80% debt. Most corporations, however, have less than

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According to tradeoff theory a tax shield adds value while financial distress c...View the full answer

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