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<p><strong>(a) Tax should would not be available on new debt, </strong></p> <p><strong>(b) P.E. Ratio would increase,</strong></p> <p><strong> (c) Equity shareholders would demand higher return,</strong></p> <p><strong> (d) Rate of Return of the company would decrease.</strong></p> <p> </p>
(d) Rate of Return of the company would decrease.
(c) Equity shareholders would demand higher return,
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