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Company financial leverage on stock prices

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Reference no: EM131802331

Examining the effects of a company's financial leverage on stock prices, earnings per share, and cost of capital is important to a firm's capital structure.

Topic 1: Bankruptcy

Your friend says that their new company's assets do not equal liabilities plus shareholder's equity. Does your friend describe a legal or economic bankruptcy? Explain your answer.

Reference no: EM131802331

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