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    Culinary, Hospitality, Travel & Tourism
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    Hospitality Financial Management
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    Exam 12: Capital Structure
  5. Question
    A Firm's Use of More Debt Financing Creates More Risk
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A Firm's Use of More Debt Financing Creates More Risk

Question 1

Question 1

True/False

A firm's use of more debt financing creates more risk to owners and thus increases the cost of equity.

Correct Answer:

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