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identify the advantage and disadvantage of financial leverage. illustrate this point in the context of a levered company with 100000 of assets financed by 45000

identify the advantage and disadvantage of financial leverage. illustrate this point in the context of a levered company with 100000 of assets financed by 45000 of debt at 5% interest and 55000 of equity in comparison to an unlevered company under the assumption that the assets generate to a return of a) 10% in a good year and b) -10% in a bad year.

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