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2.The managers of a firm wish to expand the firm's operations and are trying to determine the amount of debt financing the firm should obtain

2.The managers of a firm wish to expand the firm's operations and are trying to determine the amount of debt financing the firm should obtain versus the amount of equity financing that should be raised. The managers have asked you to explain the effects that both of these forms of financing would have on the cash flows of the firm. Write short response to this request.

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