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    Financial Reporting Financial Statement
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    Exam 5: Risk Analysis
  5. Question
    Common Shareholders Benefit with Increasing Proportions of Debt in the Capital
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Common Shareholders Benefit with Increasing Proportions of Debt in the Capital

Question 12

Question 12

Short Answer

Common shareholders benefit with increasing proportions of debt in the capital structure as long as the firm maintains an excess of ____________________ over the after-tax cost of debt

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