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Author Question: Which of the following statements about debt is TRUE? (Read 41 times)

Brittanyd9008

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on: Apr 25, 2021

Question 1

Which of the following capital structures has the highest EBIT-EPS break-even point compared to an all equity capital structure?
◦ 25% debt/75% equity
◦ 50% debt/50% equity
◦ 75% debt/25% equity
◦ 95% debt/5% equity

Question 2

Which of the following statements about debt is TRUE?
◦ Increasing debt increases the firm's flexibility.
◦ As debt increases, distress costs decrease.
◦ Using debt causes a loss of ownership by the firm.
◦ Using debt allows the firm to earn money using someone else's money.
◦ As the level of debt increases, the firm's credit rating begins to matter less.
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Marked as best answer by Brittanyd9008 on Apr 25, 2021

sierramartinez

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Reply #1 on: Apr 25, 2021
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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Brittanyd9008

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

cam1229

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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