(Answered) What effect would a decreased cost of capital have on a

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What effect would a decreased cost of capital have on a firm’s future investments?

The 1 980s were the decade of leveraging, or adding debt to capital structure. A Harvard Business Review article warned managers that if they didn’t ‘lever up with debt a hostile takeover would do it for them. Much of the debt binge had to be reversed in the 1990s—the decade of de-Levering.

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