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Question 1 1 pts As we will soon learn, it can be financially advantageous for a firm to have some debt outstanding. With this in
Question 1 1 pts As we will soon learn, it can be financially advantageous for a firm to have some debt outstanding. With this in mind, Twitter's CFO of wants to recapitalize the firm. She makes the following transactions (with the approval of the board): dr Cash 100MM cr Bond Liability 100MM dr Paid in Capital (repurchase of outstanding shares of stock) 100MM cr Cash 100MM The net effect of the CFO's actions is to (choose all the correct answers): These transactions have no effect on the firm's capitalization Increase the firm's equity Decrease the firm's debt Increase the firm's Net Income Increase the firm's debt Decrease the firm's assets O O C Increase the firm's assets Decrease the firm's equity Decrease the firm's Cash Flow From Investing
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