Respuesta :

If the money is raised 50% in debt and 50% in equity then the financials of the company will be balanced. Debt to equity ratio of the company will be 1 as both debt and equity are equal. But on the other hand, Return on equity will be lower as company needs to pay a large sum of money to its debenture holders. And also it will impact the EBIDTA margin of the company as interest is a fixed payment which needs to be paid irrespective of company performance.
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Universidad de Mexico