How does using more debt impact a firms capital structure


Question:

How does using more debt impact a firm's capital structure? Discuss the trade-offs between incremental IPO proceeds and debt financing. How would a company's balance sheet be impacted by debt financing rather than using cash? How would the company's return on equity be impacted by utilizing more debt? Can you provide reference sites for further research?

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Finance Basics: How does using more debt impact a firms capital structure
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