(Answered) 1 in class we discussed maximizing the firms value by

Engineering

1. In class, we discussed maximizing the firm's value by adding debt to capital structure. What are the two (2) opposing considerations when a firm's management is contemplating such a change (adding more debt)? Please be as specific as possible and use short answers.

2. With respect to your answers to question 1, when is a firm's value maximized?

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