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Leverage increases risk of financial distress. So if a company borrows money, shouldn’t the value of the firm go down due to the higher risk?

Investments Financial Accounting Risk Risk Modelling Finance
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Question added by Sultan Alghamdi
Date Posted: 2016/02/14
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ammar khaddar

Borrowing increases the risk of the institution ratio, that if the institution had been loss costs become big on themselves and could lead to change the strategy of the institution.

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