Multiple Choice
Which of the following is characteristic of a firm that is highly leveraged?
A) Its owners will not want to issue more stock for fear of diluting their ownership.
B) Its financial return to stockholders will decrease during recession.
C) It can skip paying dividends to its stockholders without fearing bankruptcy.
D) It can skip paying interest to its creditors without fearing bankruptcy.
Correct Answer:
Verified
Correct Answer:
Verified
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