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    Principles of Finance
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    Exam 14: Capital Structure and Dividend Policy Decisions
  5. Question
    As the Percentage of Debt in a Firm's Capital Structure
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As the Percentage of Debt in a Firm's Capital Structure

Question 90

Question 90

True/False

As the percentage of debt in a firm's capital structure increases,its financial risk increases.Once the firm increases its debt beyond the optimal level,rising interest charges result in an immediate decrease in EPS.

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