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Avalon Company has decided to finance its expansion with debt. Which of the following is true? It reduces the requirement to pay dividends Risk to

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Avalon Company has decided to finance its expansion with debt. Which of the following is true? It reduces the requirement to pay dividends Risk to the company is lower compared to financing with equity Future cash flows will be required to repay borrowed funds and interest. Debt should only be used to finance short-term assets

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