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1. What are the implications of a Change in the return on equity with an increase in debt financing? 2. What is the relationship between

1. What are the implications of a Change in the return on equity with an increase in debt financing?

2. What is the relationship between business risk, financial risk, and beta (systematic or market risk).

 

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1 Increased debt increases the leverage factor in a company During normal or boom times leverage res... blur-text-image

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