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Dynon Corporation's primary business is natural gas transportation using its custos pipeline network Dynroses unty have a non value of $153 milion. The firm is
Dynon Corporation's primary business is natural gas transportation using its custos pipeline network Dynroses unty have a non value of $153 milion. The firm is exploring the possibility of raising 553 milion by selling part of its pipeline etwork and into the 553 milion in a freoptic network to get everes by selling high-speed network bandwidth Whereas this new investment is expected to increase prots, it willowbantally increase Dyvon's risk. If Dynion is ered, would this investment be more or less strative to equity holder than it Dynon Tad not? (Select the best choice below) OA More wirectie. Euty Holders in a vered firm wil bent from an increase in the risk of the firm investments OB Noderne Leverage has no effect on how the nvestments OC. Less atractive Heing leverage will raise Dyvon's equity cost of capital, making new intents los atractive OD. More tractive. The tax benefits of leverage will make the new investment more attracte O E Les tractive Equity holders in a levered im will prefer that the time is rok tome of default
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