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If a Eugenie Finances Her Firm with Equity Rather Than

Question 82

Multiple Choice

If a Eugenie finances her firm with equity rather than debt, her net profits could potentially be greater because


A) equity financing almost always leads to better firm performance than debt financing.
B) the terms of equity financing are more stable than the terms of debt financing.
C) equity financing has a positive impact on asset selection.
D) there is no interest expense.

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