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2) Financial Statement Analysis. Your firm has hired a consultant. At the conference you're attending, she says this about your company: Sure, you've got high

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2) Financial Statement Analysis. Your firm has hired a consultant. At the conference you're attending, she says this about your company: "Sure, you've got high ROE, but with that comes a lot of risk. You have lots of ROE because you have a high Debt/Equity Ratio." People are looking very confirsed. Can you explain what the consultant means? How does high Debt/Equity cause lots of risk for your firm? Risk of what, exactly

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