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Question: If a company for a long period of time has not had any long-term debt. Why do you think the company is maintain a zero-debt policy as cost of debt is lower than cost than cost of equity?

Simultaneously,if a companyt acquired $31.8 million in debt through acquisition,( and if they payback the debt in one year) why did the company hurried to pay off the amount within one year which would have depleted it cash reserves or operational income.

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Category:- Basic Finance
Reference No.:- M92795920

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