As a company issues more debt:
A. the expected return to equity holders falls.
B. the share of financing from equity increases.
C. risk increases
D. its leverage decreases.
Answer: C
Economics
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a. activity lag b. decision-making lag c. effectiveness lag d. implementation lag e. recognition lag
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When a country specializes and trades with other countries, it is most likely that it specializes in goods for which
A) it has a comparative advantage. B) it has an absolute advantage. C) it has no advantage. D) are very costly to produce.
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