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Where does the value of leverage come from for moderately levered firms or households? What do you understand of the agency problem between debt and

Where does the value of leverage come from for moderately levered firms or households?

What do you understand of the agency problem between debt and equity holders?

Given debt is cheap why dont we see all firms level up all the way and

why dont we have a capital structure of 99% debt and 1% equity?

Can diversification increase or decrease returns

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