Business, 30.07.2020 04:01 dlatricewilcoxp0tsdw

Although the use of debt provides tax benefits to the firm, debt also puts pressure on the firm to: I) meet interest and principal payments, which if not met can put the company into financial distress; II) make dividend payments, which if not met can put the company into financial distress; III) meet both interest and dividend payments, which when met increase the firm cash flow; IV) meet increased tax payments, thereby increasing firm value

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Although the use of debt provides tax benefits to the firm, debt also puts pressure on the firm to:...

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