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Author Question: A firms financial policy has no effect on its equity beta. (Read 2849 times)

hannahmadyronde

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on: Aug 7, 2023

Question 1

With corporate taxes but no personal taxes, and without financial distress, what happens?

◦

The optimal amount of leverage for a firm is 100% debt.


◦

Equity costs increase with less debt financing.


◦

An unlevered firm cannot benefit from increased leverage.


◦

Debt costs increase with financial leverage.



Question 2

A firm’s financial policy has no effect on its equity beta.

◦ true
◦ false
Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by hannahmadyronde on Aug 7, 2023

annaelena92

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Reply #1 on: Aug 7, 2023
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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hannahmadyronde

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

aruss1303

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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