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. 16. Which of the following transactions will lower a company's financial leverage? (Points : 2) A mortgage loan is obtained and the proceeds are

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16.Which of the following transactions will lower a company's financial leverage? (Points : 2)

A mortgage loan is obtained and the proceeds are used to pay off existing short-term debt. Preferred stock is sold and the proceeds are used to pay off existing short-term debt. Common stock is sold and the proceeds are used to pay off existing short-term debt. Short-term debt is obtained to get the company through a period of negative net income and cash flow

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