How does using more debt in capital structure

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If a company's cost of capital is too high, how does using more debt in capital structure instead of equity reduce that cost? What are the disadvantages of using too much debt?

Reference no: EM13657133

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How does using more debt in capital structure : If a company's cost of capital is too high, how does using more debt in their capital structure instead of equity reduce that cost? What are the disadvantages of using too much debt
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