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From the perspective of the issuing firm, which of the following statements is incorrect? a) If the firm has zero net income, then any dividends

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From the perspective of the issuing firm, which of the following statements is incorrect? a) If the firm has zero net income, then any dividends paid will reduce retained earnings. b) As yields fall, issuing debt becomes more attractive. c) Bonds are temporary financing, and equity is permanent financing. d) Issuing new equity will lower the liquidity and solvency ratios of the firm

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