Business Studies, asked by Goldenhangman7299, 3 months ago

Why debt and equity have equal amount of risk

Answers

Answered by sharvarikadam55
0

Answer:

While debt does not dilute ownership, interest payments on debt reduce net income and cash flow. This reduction in net income also represents a tax benefit through the lower taxable income. Increasing debt causes leverage ratios such as debt-to-equity and debt-to-total capital to rise.

Answered by jafarkahanjafarkahan
0

Explanation:

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