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Which of the following circumstances may increase a company's leverage? I. The company borrows to buy back a retiring owner's stock in the company II.

Which of the following circumstances may increase a company's leverage?

I. The company borrows to buy back a retiring owner's stock in the company II. The company shifts its liabilities from mostly long-term to mostly current III. The company increases its net worth by retaining profits without increasing assets IV. The company has three years of losses

A.I & II

B.II & III

C.I & IV

D.I, II & IV

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