How does the presence of cost of financial distress combined with the tax deductibility

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How does the presence of cost of financial distress combined with the tax deductibility

How does the presence of cost of financial distress combined with the tax deductibility of interest (and the resulting interest tax savings) affect a firmâs weighted average cost of capital as the firm increases its use of debt financing from no debt to higher and higher levels of debt? (Capital Structure and Dividend Policy)

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