b) Briefly explain how an increase in the amount of debt that a company has...
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b) Briefly explain how an increase in the amount of debt that a company has outstanding may actually decrease the agency costs caused by the conflict between managers and shareholders (4 marks) c) Crystal Ltd has $75 million of debt outstanding and $25 million of equity outstanding. The cost of equity is 15%, cost of debt is 9% and company tax rate is 30%. What is the weighted average cost of capital for Crystal Ltd
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