How does the riskiness of the company as perceived by the


Companies are generally financed with a mix of debt and equity.

How does the riskiness of the company as perceived by the financial market change as the mix shifts from all equity to mostly debt? Why?

Would changes in perceived risk induced by changes in the debt-equity mix affect the company's stock price?

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Finance Basics: How does the riskiness of the company as perceived by the
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