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Question 1 (2.5 points) If a firm increases leverage, we can say that the firm is increasing shareholder risk. True False Question 2 (2.5 points)

Question 1 (2.5 points) If a firm increases leverage, we can say that the firm is increasing shareholder risk. True False Question 2 (2.5 points) In the event of a bankruptcy, common shareholders have a claim on assets before debtholders. True False

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