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  3. Study Set
    Contemporary Financial Management Study Set 2
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    Exam 15: Capital Structure Concepts
  5. Question
    Due to Both Financial Distress and Agency Costs, a Firm
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Due to Both Financial Distress and Agency Costs, a Firm

Question 4

Question 4

Multiple Choice

Due to both financial distress and agency costs, a firm should have a capital structure that contains ____.


A) all debt
B) all equity
C) both debt and equity
D) only long-term debt

Correct Answer:

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