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Q2: You are advising Oil Company in Brazil. The firm is in a high-growth stage and is looking at the optimal way to finance itself.

Q2: You are advising Oil Company in Brazil. The firm is in a high-growth stage and is looking at the optimal way to finance itself. Looking at the companies across the globe, it concludes that a significant protection of its capital should come from debt. Is this conclusion justified? Why and Why not?

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