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How Much Debt a Firm Should Hold Depends Partly on the Nature

Question 4

Multiple Choice

How much debt a firm should hold depends partly on the nature of its industry and its target markets. Which of the following firms can sustain a higher debt ratio?


A) an automobile firm in a developing economy
B) a software firm that sells software in an emerging economy
C) an insurance firm with stable sales in an advanced economy
D) a small supplier of construction material in a poor country

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