Question: chapter is about FINANCIAL LEVERAGE AND CAPITAL STRUCTURE POLICY 1. Identify the impact of taxes ad bankruptcy on capital structure choices. 2. What are the

chapter is about FINANCIAL LEVERAGE AND CAPITAL STRUCTURE POLICY

1. Identify the impact of taxes ad bankruptcy on capital structure choices.

2. What are the essentials of the bankruptcy process?

3. What is the relationship between the value of an unlevered firm and the value of a levered firm once we consider the effect of corporate taxes?

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