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    Fundamentals of Corporate Finance Study Set 13
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    Exam 16: Capital Structure
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    By Adding Leverage, the Returns on the Firm Are Split
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By Adding Leverage, the Returns on the Firm Are Split

Question 61

Question 61

True/False

By adding leverage, the returns on the firm are split between debt holders and equity holders, but equity holder risk remains the same because dividends are paid first.

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