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1. Firm Value Discuss any ways that you think a change in the capital structure of a...

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Finance

1. Firm Value

Discuss any ways that you think a change in the capitalstructure of a firm can affect the stock price.

2. Tax Benefit of Leverage

Discuss how the tax code favors debt financing over equity.

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1 Discuss any ways that you think a change in the capital structure of a firm can affect the stock price Stock price of a firm is inversely proportional to the cost of capital By altering the capital structure of the firm we can either increase or decrease the firms cost    See Answer
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1. Firm ValueDiscuss any ways that you think a change in the capitalstructure of a firm can affect the stock price.2. Tax Benefit of LeverageDiscuss how the tax code favors debt financing over equity.

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