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Author Question: Firms having positive prospects try to avoid using debt and, rather, to raise any required new ... (Read 2915 times)

emoedee

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Question 1

Firm A has a higher degree of business risk than Firm B. Firm A can offset this by using less financial leverage. Therefore, the variability of both firms' expected EBITs could actually be identical.

◦ true
◦ false

Question 2

Firms having positive prospects try to avoid using debt and, rather, to raise any required new capital by other means, including selling stock.

◦ true
◦ false


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Marked as best answer by emoedee on Aug 7, 2023

Kevin5!

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emoedee

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it


Liddy

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Reply 3 on: Yesterday
Gracias!

 

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