Dynamic Electronics, Inc., a successful and high-growth company, consistently experiences a favorable difference between the rate of

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Dynamic Electronics, Inc., a successful and high-growth company, consistently experiences a favorable difference between the rate of return on its assets and the interest rate paid on borrowed funds. Explain why this company should not increase its debt to the 90% level of total capitalization and thereby minimize any need for equity financing.
(CFA Adapted)

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Financial Statement Analysis

ISBN: 978-0078110962

11th edition

Authors: K. R. Subramanyam, John Wild

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