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A substantial increase in debt______ on the firm's assets. A. Will always dilute the existing stockholders claim B. will always dilute existing debtholders claim C.

A substantial increase in debt______ on the firm's assets.

A. Will always dilute the existing stockholders claim

B. will always dilute existing debtholders claim

C. May dilute the existing debtholders claim

D. Will stabilize the existing debtholders claim

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