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Case: Tom Dawes, the founder of Footwear Inc., needs to raise $500,000 to expand his company's operations. He has been told that raising the money

Case: Tom Dawes, the founder of Footwear Inc., needs to raise $500,000 to expand his company's operations. He has been told that raising the money through debt will increase the riskiness of his company much more than issuing stock. Tom has asked you to assess whether this is accurate or not, and if so, why?

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