In a world with no taxes, no transaction costs, and no costs of financial distress, does moderate borrowing increase the

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answerhappygod
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In a world with no taxes, no transaction costs, and no costs of financial distress, does moderate borrowing increase the

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In a world with no taxes, no transaction costs, and no costs of financial distress, does moderate borrowing increase the required return on a firm’s equity? Does it necessarily follow that increases in debt increase the riskiness of the firm? Explain.
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