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Which of the Following Factors Favor the Issuance of Debt

Question 6

Multiple Choice

Which of the following factors favor the issuance of debt in the financing decision?
I.Market signaling
II.Distress costs
III.Management incentives
IV.Financial flexibility


A) I and II only
B) I and III only
C) II and IV only
D) I, II, and III only
E) I, II, and IV only
F) None of the above.

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