Why is the amount of debt in a companys capital structure important to the financial analyst? (a)

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Why is the amount of debt in a company’s capital structure important to the financial analyst?

(a) Debt implies risk.

(b) Debt is less costly than equity.

(c) Equity is riskier than debt.

(d) Debt is equal to total assets.

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Understanding Financial Statements

ISBN: 9781292101552

11th Global Edition

Authors: Lyn Fraser, Aileen M. Ormiston

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