If we assume that increased leverage does not increase the risk of bankruptcy or financial distress, increased

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If we assume that increased leverage does not increase the risk of bankruptcy or financial distress, increased leverage ______________ the risk of equity.

Group of answer choices

a-does not affect

b-increases

c-decreases

d-Depends on the capital structure.

Related Book For answer-question

Thermodynamics for Engineers

ISBN: ?978-1133112860

1st edition

Authors: Kenneth A. Kroos, Merle C. Potter

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Posted Date: Jan 09, 2021 02:52 PM

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If we assume that increased leverage does not increase the risk of bankruptcy or financial distress, increased

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Expert Answer:

ANSWER D Depends on the capital structure The Capital Structure of a firm also depends on the stabil... View the full answer

Thermodynamics for Engineers

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