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A firm has total liabilities of $45 million and owners' equity of $55 million, so that it has $100 million in total assets, $30 million

A firm has total liabilities of $45 million and owners' equity of $55 million, so that it has $100 million in total assets, $30 million of which are in cash. If the firm unexpectedly decides to undertake a new investment project and uses $25 million of its cash to acquire manufacturing equipment

a.

the firm's debt will become riskier

b.

the firm's equity will become riskier

c.

the firm's assets will become riskier

d.

this would be asset substitution

e.

A and B

f.

A and C

g.

A and D

h.

B and C

i.

B and D

j.

C and D

k.

all but A

l.

all but B

m.

all but C

n.

all but D

o.

all are true

p.

none are true

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