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Firm A and Firm B have identical operations. The only difference is in their capital structure. Firm A is financed entirely by interest-bearing debt. Firm

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Firm A and Firm B have identical operations. The only difference is in their capital structure. Firm A is financed entirely by interest-bearing debt. Firm B is financed entirely by equity, and pays dividends to its shareholder each year. Which firm has higher Cash Flow from Operations (CFO)? Firm B has higher CFO. O Firm A has higher CFO O They have the same CFO

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