Once you recognize the fact that debt also increases financial risk and causes shareholders to demand a higher return on their investment,debt is no cheaper than equity.

Name: Once you recognize the fact that debt also increases financial risk and causes shareholders to demand a higher return on their investment,debt is no cheaper than equity.
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When debt increases, the financial risk also increases, and shareholders demand a higher return on investment. Therefore, debt is not cheaper than equity.

Once You Recognize the Fact That Debt Also Increases Financial