Question: What effect does financial leverage have on a company's return on equity and its overall valuation? What guiding principles help managers decide on the amount

What effect does financial leverage have on a company's return on equity and its overall valuation? What guiding principles help managers decide on the amount of debt and equity (i.e. the capital structure) they should fund their activities with? Is there an optimatl capital structure the firm should target? Please i need this question answer by 12noon and please provide the reference.

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