Question: 15,16 All else equal, increasing leverage would (_) a firm's share price due to the expected bankruptcy costs and are firm's share price due to

15,16

15,16 All else equal, increasing leverage would (_) a firm's share price

All else equal, increasing leverage would (_) a firm's share price due to the expected bankruptcy costs and are firm's share price due to the expected tax-shield. lower, lower raise, lower lower, raise QUESTION 16 A positive NFV project requires a $20M investment. What market friction would lead a shareholder to prefer that the firm issue shares instead of debt to fund the project? Agency Taxes Bankruptcy Costs

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