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Your firm has been plodding along without much attention from the stock market; both analysts and investors are not showing much interest in your company.

Your firm has been plodding along without much attention from the stock market; both analysts and investors are not showing much interest in your company. Your boss insists that (a) he can increase the return on equity of the company by simply taking on more debt and (b) that will attract new investors to the firm because of the higher returns. What is your assessment of his reasoning? (True or False)

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