You own stock in the Gentry Company, and you read in the financial press that a recent
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You own stock in the Gentry Company, and you read in the financial press that a recent bond offering has raised the firm’s debt/equity ratio from 35% to 55%. Discuss the effect of this change on the variability of the firm’s net income stream, other factors being constant. Discuss how this change would affect your required return on the common stock of this firm.
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Related Book For 
Investment Analysis And Portfolio Management
ISBN: 9780176500696
1st Canadian Edition
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
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