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Question 5 (2 points) The existence of asymmetric (insider) information makes it desirable for firms to: Question 5 options: maintain a reserve borrowing capacity by
Question 5 (2 points)
The existence of asymmetric (insider) information makes it desirable for firms to:
Question 5 options:
| maintain a reserve borrowing capacity by using less debt than is optimal. |
| use less equity than optimal so that they can issue stock whenever they need. |
| always maintain an optimal mix of debt and equity. |
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