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Why do not firms increase the leverage as much as possible

Assignment Help Financial Accounting
Reference no: EM132547922

Question 1: Why don't firms increase their leverage as much as possible? Check ALL that apply

Option 1: Having too much debt increases the interest rate firms have to pay on their loans

Option 2: It will increase their risk of bankruptcy

Option 3: It will increase their tax bill

Option 4: It will slow down the collection of receivables

Reference no: EM132547922

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