When discussing maximizing a firms value by adding debt to


1) When discussing maximizing a firms value by adding debt to the capital structure. What are the two (2) opposing considerations when a firms management is contemplating such a change (adding more debt)? Please be as specific as possible and use short answers.

2) With respect to your answers to question 1, when is a firms value maximized?

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Financial Management: When discussing maximizing a firms value by adding debt to
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