This technical note describes the relationship between the shareholders and the use of recourse firms with debt. It explores the theoretical arguments on how the cost of equity changes using debt, and discusses the limitations of each type. It also provides a conceptual and practical advice on the use of "borrowed" and «unlevered" beta.
This Darden study. "Hide
by Susan Chaplinsky, Robert S. Harris Source: Darden School of Business 16 pages. Date : April 1, 1997. Prod. #: UV0106-PDF-ENG
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