What if the firm used much more debt to fiance it


Suppose you are the president of a large corporation located in Seattle, Washington. How do you think the stockholders will react if you decide to increase to proportion of the company's assets that is finacned with debt from 35 percent to 50 percent? in other words, what if the firm used much more debt to fiance it assets?

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Financial Management: What if the firm used much more debt to fiance it
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