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Your company is currently very successful and profitable. Its debt-equity ratio is presently 0. You know your companys assets mainly belong to the category of

Your company is currently very successful and profitable. Its debt-equity ratio is presently 0. You know your companys assets mainly belong to the category of tangible assets. One of the managers suggests the company might want to issue some debt and retire a corresponding amount of equity. Elaborate on the pros and cons of such a proposal and make a decision about whether to accept it or not.

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