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18. decisionsisaspecificriskfactormanagementneedstoconsiderinmakingcapitalstructuring decisions. A) Market risk. B) Inflation risk. C) Interest rate risk. D) Financial risk. E) None of the above. 19. The from different

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18. decisionsisaspecificriskfactormanagementneedstoconsiderinmakingcapitalstructuring decisions. A) Market risk. B) Inflation risk. C) Interest rate risk. D) Financial risk. E) None of the above. 19. The from different sources of capital affects the decision making in the selection of the optimal capital structuring for a firm. A) Trading on equity. B) Cost of capital. C) Tax advantage. D) Equity Investors. E) None of the above 20. When a firm increases the amount of debt financing of its operations, the firm A) Decreases the fixed interest expense. B) Increases the fixed interest expense. C) Is believed to be operating optimally. D) Is believed to be unlevered

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