Question: Does increasing leverage usually primarily increase the expected income component of the return or the appreciation component? Why? [Hint: Use the WACC formula and assume

Does increasing leverage usually primarily increase the expected income component of the return or the appreciation component? Why? [Hint: Use the WACC formula and assume that debt is usually interest-only or amortized (so not negative amortization); while interest payments are usually positive and around the same magnitude as rental yield.]

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