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10 cards from this deck
Proportion of funding from non-current liabilities vs equity
Non-current liab./(Total equity + Non-current liab.) × 100
Above 50%
Below 25%
25%-50%
More borrowing means higher interest payments when rates rise
Can't afford loan & interest repayments, may fail
Extra funds for expansion & growth
May lose investment if business fails/enters liquidation
Lenders with secured loans, then shareholders last
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