Upsides and downsides to the use of financial leverage

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How can changes in a firm’s capital structure provide signals to investors in a market? Explore the upsides and downsides to the use of financial leverage. The “baby boomer” generation is getting close to retirement. Will this have any impact on investors’ preferences for dividends? How might firms respond to this? Under what circumstances would you have a preference for dividends?

Reference no: EM131543509

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