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As the proportion of debt in a firm s capital structure , what we can say with certainly about the firm 's risks and financial

As the proportion of debt in a firm s capital structure , what we can say with certainly about the firm 's risks and financial flexibility?

select one:l

a. Both financial financial flexibility and risk remain same

b. financial flexibility decreases and risk may decrease

c. financial flexibility increases and risk may increase

d. profitability decreases

e.none of the above answer is correct

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