Solved: Why is debt an attractive source of capital, Finance Basics

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Why is debt an attractive source of capital

Problem:

Why is debt an attractive source of capital? What risks does a company incur when it uses debt to fund growth? Why will a company that uses 10% debt have less variability in EPS at different levels of income than a company that uses 25% debt? At what cost of debt will there be no difference in EPS at a given level of income?

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Finance Basics: Why is debt an attractive source of capital

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Finance Basics: Why is debt an attractive source of capital

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