Explain the use of equity versus debt

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It has been said that expected bankruptcy costs can help explain the use of equity versus debt in corporate financial structure, even though interest but not dividends are tax deductible.

Can bankruptcy costs also explain hedging practices that on average reduce expected earnings?

Reference no: EM131245842

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Explain the use of equity versus debt : explain the use of equity versus debt in corporate financial structure, even though interest but not dividends are tax deductible. - Can bankruptcy costs also explain hedging practices that on average reduce expected earnings?
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