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7. Ms. Consultant has suggested Mr. Entrepreneur to increase capital investment in equipment and tools in order to take advantage of operating leverage effect. Also,
7. Ms. Consultant has suggested Mr. Entrepreneur to increase capital investment in equipment and tools in order to take advantage of operating leverage effect. Also, she has suggested increasing amount of debt in total financing in order to utilize financial leverage effect. Do you agree or disagree with her suggestions? (2 marks), and why? (3 marks)? What are the factors you need to consider in order to implement her suggestion properly
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