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The development of the new issue junk bond market had important implications for capital structure choice

The development of the new issue junk bond market had important implications for capital structure choice
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FINANCE

The development of the new issue junk bond market had important implications for capital structure choice. The existence of a viable junk bond market means that firms can comfortably maintain higher degrees of leverage than they could prior to the development of this market. Do you agree or disagree? Justify your answer.


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