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Debt financing 1. increases stockholders' return more than an equal dollar amount of preferred stock 2. increases stockholders' return less than an equal dollar amount
Debt financing
1. | increases stockholders' return more than an equal dollar amount of preferred stock |
2. | increases stockholders' return less than an equal dollar amount of preferred stock |
3. | is less risky to the investor than preferred stock |
4. | is more risky to the investor than preferred stock |
a. | 2 and 4 | |
b. | 1 and 4 | |
c. | 2 and 3 | |
d. | 1 and 3 |
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