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As the degree of financial leverage increases, the: Multiple Choice number of outstanding shares of stock decreases. dollar amount of a firm's total debt decreases.

As the degree of financial leverage increases, the:

Multiple Choice

number of outstanding shares of stock decreases.

dollar amount of a firm's total debt decreases.

accounts payable balance decreases.

less debt a firm has per dollar of total assets.

probability a firm will encounter financial distress increases.

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