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    Financial Management Principles and Applications Study Set 2
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    Exam 15: Capital Structure Policy
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    The Tradeoff Theory of Capital Structure Management Assumes
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The Tradeoff Theory of Capital Structure Management Assumes

Question 49

Question 49

Multiple Choice

The tradeoff theory of capital structure management assumes


A) no corporate income taxes.
B) cost of equity remains constant with an increase in financial leverage.
C) firms might fail.
D) none of the above.

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