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Author Question: As a firm increases its use of debt, bondholders will (Read 59 times)

Coya19@aol.com

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on: Apr 25, 2021

Question 1

All of the following are reasons why firms would choose lower levels of debt than optimal EXCEPT
◦ control.
◦ risk.
◦ tax shelters.
◦ a low cost of debt.
◦ flexibility.

Question 2

As a firm increases its use of debt, bondholders will
◦ force managers to accept protective covenants.
◦ monitor managers less.
◦ accept a lower interest rate on their bonds.
◦ discourage managers from pursuing risky projects.
◦ be indifferent about firm risk.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Coya19@aol.com on Apr 25, 2021

anoriega3

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Coya19@aol.com

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

amandanbreshears

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Reply 3 on: Yesterday
Gracias!

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