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In which of the following combinations of capital structure do the common stockholders have to bear the maximum risk? a. 100 percent equity b. 100

In which of the following combinations of capital structure do the common stockholders have to bear the maximum risk?

a.

100 percent equity

b.

100 percent debt

c.

50 percent equity and 50 percent debt

d.

25 percent equity and 75 percent debt

e.

75 percent equity and 25 percent debt

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