Explain this statement using leverage has both good and bad, Financial Management

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Explain this statement using leverage has both good and bad

1. Explain this statement: “Using leverage has both good and bad effects.”

2. Besides the tax shield, identify two advantages of using financial leverage.

3. Why is it important for bank managers to quantify credit risk? What are some of the difficulties with quantifying credit risk?

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Financial Management: Explain this statement using leverage has both good and bad

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