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    Contemporary Financial Management Study Set 2
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    Exam 17: Capital Structure Management in Practice
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    A Firm That Employs a Relatively Large Proportion of Debt
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A Firm That Employs a Relatively Large Proportion of Debt

Question 40

Question 40

Multiple Choice

A firm that employs a relatively large proportion of debt and preferred stock in its capital structure will have a relatively ____ degree of financial leverage.


A) low
B) high
C) insignificant
D) constant

Correct Answer:

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