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tinasheking
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I need help. Using market values, where do the industry sector and its investors prefer the range of capital gearing to cover?There is no preferred range – there are both advantages and disadvantages. In theory, according to Modigliani and Miller, when there is tax then a company should aim to be as highly geared as possible (because of the tax relief on the debt interest).
There are free lectures covering everything you need with regard to gearing on the website.
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