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11) Which of the following statements is correct? Debt financing reduces a firm's risk. The lower the level of a firm's debt, the lower the

11) Which of the following statements is correct?

Debt financing reduces a firm's risk.

The lower the level of a firm's debt, the lower the firm's equity multiplier.

A leveraged firm is less risky than a firm that has no leverage.

The lower the level of a firm's debt, the higher the firm's leverage.

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