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YZF Corporation's primary business is grocery retailing using its 540 shops around the country. YZF's assets currently have a market value of $160 million. The

YZF Corporation's primary business is grocery retailing using its 540 shops around the country. YZF's assets currently have a market value of $160 million. The firm is exploring the possibility of raising $50 million by selling 160 shops and investing the $50 million in afiber-optic network to generate revenues by selling high-speed network bandwidth. While this new investment is expected to increase profits, it will also substantially increase YZF's risk. All else being equal, if YZF is levered, would this investment be more or less attractive to equity holders than if YZF had no debt? (No calculation is needed, limit your answer to 100 words) (6 marks)

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