Use of debt intensifies the firm''s business risk borne

Reference no: EM13534035

The use of debt intensifies the firm's business risk borne by the common stockholders. As a result, shareholders of a firm with higher debt ratio would require a higher return compared to a similar firm without debt

Reference no: EM13534035

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Use of debt intensifies the firm''s business risk borne : The use of debt intensifies the firm's business risk borne by the common stockholders. As a result, shareholders of a firm with higher debt ratio would require a higher return compared to a similar firm without debt

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