Multiple Choice
Which of the following is NOT a sensible reason for a firm to rely on internal funds?
A) Equity issues are generally expensive.
B) A new bond issue may drive the firm's debt ratio too high.
C) Financial markets interpret the issuance of equity unfavorably.
D) All of these are sensible reasons to rely on internal funds.
Correct Answer:
Verified
Correct Answer:
Verified
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