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Over the past three years, Art's Bakery has increased its debt and lowered its equity. Which one of these statements is most apt to apply
Over the past three years, Art's Bakery has increased its debt and lowered its equity. Which one of these statements is most apt to apply to this firm?
Multiple choice question.
The firm's debt service payments are decreasing.
The firm is decreasing its equity multiplier.
The firm's safety cushion that helps absorb earnings fluctuations is diminishing.
The firm is decreasing its' potential for financial distress.
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