Multiple Choice
When considering a firm's capital structure,a financial manager must:
A) make sure that business conditions are good when changing the level of debt.
B) balance the benefits of increased expected returns with increased financial risk.
C) be extra cautious during periods when the rate of return on assets is greater than the interest rate on debt.
D) seek to reduce debt at all costs.
Correct Answer:
Verified
Correct Answer:
Verified
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