Companies had highly leveraged capital structures

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Reference no: EM131499132

About 30 years ago, when Japanese companies were "eating our lunch", many analysts noted that those companies had highly leveraged capital structures -- lots of debt and little equity. Looking at the WACC formula suggests that more debt relative to equity might lower WACC. Is leverage "always" good or "always" bad? If it depends on the industry, please suggest which ones would be expected to have greatest and least leverage.

Reference no: EM131499132

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