Discuss the company capital structure policy

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Question - A cost that has to be weighed into the debt decision is the expected cost of bankruptcy. As the cost rises, companies should borrow less money. Assume that you are looking at an Australian energy company that has historically enjoyed monopoly power and has funded itself with a significant amount of debt. The energy market has now been opened up to competition. Critical discuss the company's capital structure policy and what are the implications to its shareholders?

Reference no: EM132995187

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