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Firms that use financial leases must consider their debt-to-equity ratios as inadequate measures of financial leverage because 1. lenders are concerned about the firm's total
Firms that use financial leases must consider their debt-to-equity ratios as inadequate measures of financial leverage because 1. lenders are concerned about the firm's total liabilities and related cash flow. 2. debt displacement occurs with leasing. 3. less future debt can be raised for a growing firm when a lease is used. 4. All of the above. 5. None of the above
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