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Author Question: Which of the following statements is correct? (Read 259 times)

xxxxxxxxxxxx

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on: Aug 7, 2023
Which of the following statements is correct?

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A firm with low business risk is less likely to increase its use of financial leverage than a firm with high business risk, assuming all else is equal.


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There is no reason to think that changes in the personal tax rate would affect firms’ capital structure decisions.


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In general, a firm with high operating leverage also has a large proportion of its total costs in the form of fixed costs.


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Suppose a firm has less than its optimal amount of debt. Increasing its use of debt to the point where it is at its optimal capital structure will decrease the costs of both debt and equity financing.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by xxxxxxxxxxxx on Aug 7, 2023

RodrickHac

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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xxxxxxxxxxxx

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

mcarey591

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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