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Holding all other factors constant, if a firm increases its current assets relative to total assets, A.its financing costs will fall. B.net working capital will

Holding all other factors constant, if a firm increases its current assets relative to total assets,

A.its financing costs will fall.

B.net working capital will rise.

C.has no effect on return and reduces risk

D.it reduces return and increases risk.

E.none of above are correct

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