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How the amount of debt in the capital structure translates

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Reference no: EM13887053

Question:

Capital structure is the mix of equity and long-term and "permanent" short-term debt utilized by management to finance the firm's assets (think of the right hand side of the balance sheet).

In addressing this question, think about how the amount of debt in the capital structure translates into leverage and risk (volatility).

Reference no: EM13887053

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