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If debt financing is used in a for-profit corporation, more of a firm's operating income is available for distribution to investors (owners and creditors). The

If debt financing is used in a for-profit corporation, more of a firm's operating income is available for distribution to investors (owners and creditors). The additional available operating income arises as a result of . . 1. greater operating expenses 2. greater operating revenue 3. reduced operating expenses 4. lower dividends 5. tax savings

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