You have been asked the following questions: If debt can reduce the weighted average cost of capital

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You have been asked the following questions: ‘If debt can reduce the weighted average cost of capital for project appraisal, why does it then increase the risk of a company? Is it possible for a financial manager to diversify bankruptcy risk away like other risks?’ What are your answers?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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