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Firms that rely on consistent external financing a.are placing themselves in a poised position to deal with an economic downturn. b.are at a greater risk

Firms that rely on consistent external financing

a.are placing themselves in a poised position to deal with an economic downturn.

b.are at a greater risk since this external funding may not always be available.

c. are creating capital structures far superior to others due to tax shields.

d. can be adversely affected in years of economic prosperity.

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