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11 Question 11 1 pts Neptune Corporation borrowed extensively when interest rates were low. Now the firm wants to decrease its degree of financial leverage.
11
Question 11 1 pts Neptune Corporation borrowed extensively when interest rates were low. Now the firm wants to decrease its degree of financial leverage. The firm currently has the following capital structure: Common Equity $20,000,000 (25% weight) Bonds $60,000,000 (75% weight) The firm can decrease financial leverage by: Issuing common stock and using the proceeds to pay off bonds O All of the answer choices are correct Financing its future investments with a higher portion of bonds O Financing its future investments with bank loans instead of bonds Step by Step Solution
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