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12. A firm's use of debt and preferred stock affects which of the following? a. Financial risk. b. Degree of operating leverage. c. Market risk.
12. A firm's use of debt and preferred stock affects which of the following? a. Financial risk. b. Degree of operating leverage. c. Market risk. d. Business risk. 13. Harvey Industries Pays a current dividend of $6.10 and shar current dividend of $6.10 and shareholders require a 12% return. The dividend will araw at a high rate of 20% and then gradually decline to 5% over a six-year period. The value of Harvey Industries shares using the H Model is closest to: a $121.39. b. $127.74 c. $130.71. d. $137.93
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