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LEVERAGE MODEL WITH RISK: Assume rhat=8% and i = 3%. What is one disadvantage of increasing a firm's leverage (D/E) ratio? increasing D/E will lower
LEVERAGE MODEL WITH RISK: Assume rhat=8% and i = 3%. What is one disadvantage of increasing a firm's leverage (D/E) ratio? increasing D/E will lower the amount of A o increasing D/E will lower expected equity growth rate o increasing D/E will increase equity growth rate risk o increasing D/E will lower equity growth rate risk
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