Equity Flashcards

(2 cards)

1
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

According to static trade off theory of capital structure what is the value of a levered company reduced by?

A

The PV of costs of financial distress only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly