Why firms in industries would prefer to have low leverage

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Question: Part 1: Firms in the real estate investment trusts (REITs), airlines, electric utilities, and paper products industries tend to have high leverage. Explain why firms in these industries would prefer to have high leverage. Part 2: Firms in the computer hardware, footwear, apparel and luxury goods, and data processing industries tend to have low leverage. Explain why firms in these industries would prefer to have low leverage. Include some news from an article that is less than a year old that is applicable to this discussion.

Reference no: EM132028256

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