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A, B, C and C have a capital of 5 000 000 where the first is with company capital, the second has 30% debt while

A, B, C and C have a capital of 5 000 000 where the first is with company capital, the second

has 30% debt while the 3rd is 70% with borrowed capital? What is the level of leverage for each? How much return on investment, but in capital if the value of shares increases by 20%?

Which company is safer if we expect a market decline of 30%, explain?





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