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Question 6 (2 points) Avalon Company has decided to finance its expansion with debt. Which of the following is true? Risk to the company is

Question 6 (2 points)\ Avalon Company has decided to finance its expansion with debt. Which of the following is true?\ Risk to the company is lower compared to financing with equity\ Debt should only be used to finance short-term assets\ Future cash flows will be required to repay borrowed funds and interest\ It reduces the requirement to pay dividends\ page 6 of 20

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Question 6 (2 points) 1) Listen Avalon Company has decided to finance its expansion with debt. Which of the following is true? Risk to the company is lower compared to financing with equity Debt should only be used to finance short-term assets Future cash flows will be required to repay borrowed funds and interest It reduces the requirement to pay dividends

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