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5.0 Amazon Electric wants to increase its debt ratio, which will also increase its interest expense. Assume that the higher debt ratio will have no

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5.0 Amazon Electric wants to increase its debt ratio, which will also increase its interest expense. Assume that the higher debt ratio will have no effect on the company's operating income, total assets, or tax rate. Also, assume that the basic earning power ratio exceeds the before-tax cost of debt financing. Which of the following will occur if the company increases its debt ratio? 8. All of the statements above are correct

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