Solution-Financial leverage increases

Financial leverage increases

Reference no: EM131190292

As percentage of debt on the balance sheet increases, WACC decreases while financial leverage increases, which makes EPS increase. If this is the case, why don't all firms try to end up with 99.9% debt?

Reference no: EM131190292

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Financial leverage increases

Reference no: EM131190292

Reference no: EM131190292

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