Do the pecking order and optimal capital structure theories
Question: 1. Do the direct costs of bankruptcy seem to be high enough to limit the amount of financial leverage employed by a firm?
2. Do the pecking order and optimal capital structure theories provide consistent conclusions? Discuss.
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question 1 do the direct costs of bankruptcy seem to be high enough to limit the amount of financial leverage employed
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The number is huge. It all works because the US economic system distributes the output of farms and factories.
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