Explain why increasing financial leverage increases the
1. Explain why increasing financial leverage increases the risk borne by shareholders.
2. Explain how a company can incur costs of financial distress without ever going bankrupt. What is the nature of these costs?
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suppose there are two states 1 and 2 state 1 occurs with probability p and wi denotes a consumers wealth in state ia if
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1 explain why increasing financial leverage increases the risk borne by shareholders2 explain how a company can
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