How can firm value not be increased by having more debt why, Financial Management

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How can firm value not be increased by having more debt why

1. How can firm value not be increased by having more debt?

2. An investor owns a bond selling for $4,000. This bond can be converted into 85 shares of stock that are currently selling for $40 per share. Should the investor convert his bond into shares?

3. Why managers prefer an internal source of the fund?

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Financial Management: How can firm value not be increased by having more debt why

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Financial Management: How can firm value not be increased by having more debt why

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