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    Principles of Finance
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    Exam 14: Capital Structure and Dividend Policy Decisions
  5. Question
    If the Firm's Actual Debt-To-Assets Ratio Is Below Its Target
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If the Firm's Actual Debt-To-Assets Ratio Is Below Its Target

Question 75

Question 75

True/False

If the firm's actual debt-to-assets ratio is below its target level,expansion capital should be raised by issuing equity in order to preserve the firm's borrowing capacity.

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