Why do public utility companies usually have capital

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Question:

1. Why do public utility companies usually have capital structures that are different from those of retail firms? Explain.
2. Why is EBIT generally considered to be independent of financial leverage? Why might EBIT be influenced by financial leverage at high debt levels? Explain.

3. Explain the concept of locational arbitrage and triangular arbitrage and the scenario necessary for each to be plausible.

4. Does arbitrage Destabilize Foreign exchange Markets? Explain.

 

Reference no: EM133369144

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