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The probability of financial distress Question 1 options: 1.Increases when the firm's debt to value ratio increases 2.decreases when the firm's debt to value ratio

The probability of financial distress

Question 1 options:

1.Increases when the firm's debt to value ratio increases

2.decreases when the firm's debt to value ratio increase

3.Increases when the volatility in the firm's operating cash flows increase.

4.Both A and C

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