Finance Capital structure : Effect of leverage on shareholders

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					              Sub: Finance                                                                      Topic: Capital Structure



              Question:
              Effect of leverage on shareholders

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              In this set of problems, is leverage good for shareholders? Why? Is levering/unlevering the firm
              something that shareholders can do for themselves? In what sense should shareholders pay a premium
              for shares of levered companies?


              Solution:
              Leverage may be in 
				
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Description: Effect of leverage on shareholders : In this set of problems, is leverage good for shareholders? Why? Is levering/unlevering the firm something that shareholders can do for themselves?
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