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    Foundations of Financial Management Study Set 1
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    Exam 11: Cost of Capital
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    The Addition of Bankruptcy Costs in Modigliani and Miller's Work
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The Addition of Bankruptcy Costs in Modigliani and Miller's Work

Question 19

Question 19

True/False

The addition of bankruptcy costs in Modigliani and Miller's work suggests that the cost of capital will eventually increase as more debt is issued.

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