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Which of the following is true regarding the UNLEVERAGED FIRM? O Firms use internally generated funds first, because there are no flotation costs or negative

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Which of the following is true regarding the UNLEVERAGED FIRM? O Firms use internally generated funds first, because there are no flotation costs or negative signals associated with such action O Firms issue debt ahead of stock because it has lower flotation costs O Firms issue stock ahead of debt because it has lower flotation costs O Unleveraged firms typically have a high degree of financial leverage and financial risk Managers and investors have the same information about the firm The sale of stock is always viewed as a positive signal None of the above

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