Define the optimal fraction of debt and the growth rate of


1. Define the optimal fraction of debt and the growth rate of a firm. What is the relationship between the two?

2. What is leveraged recapitalization and what effects does it have on the value of equity?

3. What is the most important factor in a successful new product introduction and why? Identify and briefly describe the steps in the new product development process.

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Financial Management: Define the optimal fraction of debt and the growth rate of
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