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Companies have the opportunity to use varying amounts of different sources of financing, including internal and external sources, to acquire their assets, debt ( borrowed
Companies have the opportunity to use varying amounts of different sources of financing, including internal and external sources, to acquire their assets, debt borrowed funds, and equity funds.
Company A uses longterm debt to finance its assets, and company B uses capital generated from shareholders to finance its assets. Which company would be considered a financially leveraged firm?
A Company B
B Company A
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