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Suppose you are a CFO of retail business, and your companys credit rating is A, which gives very low cost of borrowing. Since debt is
Suppose you are a CFO of retail business, and your companys credit rating is A, which gives very low cost of borrowing. Since debt is typically a cheaper source of financing than is equity, why NOT your firm uses as close to 100% debt financing as possible? Please discuss the possibilities and pros/cons of raising capital from 100% debt? (300 words limit with bulletin points to answer the above questions Marks: 30)
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