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4. Capital structure You are working for a public company in the Biotech industry. Your boss comes into your office and makes the following statement

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4. Capital structure You are working for a public company in the Biotech industry. Your boss comes into your office and makes the following statement Debt is cheap the interest rate we would pay is only 4%, so we should borrow as much as we can to lower our WACC and increase the value of the firm. How do you respond to your boss? (18 points)

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