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Topic: Business
Number of pages / Number of words: 20 / 5360
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According to financial market theory, this reduction should lead to an increase in firm value. More specifically, the value of the assets changes because the required rate of return decreases. Those changes occur on the passive side of the firm’s balance sheet. In simple terms, the firm adjusts its capital structure to maximize the overall value of the firm...


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According to financial market theory, this reduction should lead to an increase in firm value. More specifically, the value of the assets changes because the required rate of return decreases. Those changes occur on the passive side of the firm’s balance sheet. In simple terms, the firm adjusts its capital structure to maximize the overall value of the firm...


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