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Which of the following statements about debt financing is most correct? Debt financing can help managers use excess cash on perquisites. Debt financing may make
Which of the following statements about debt financing is most correct?
Debt financing can help managers use excess cash on perquisites. | ||
Debt financing may make managers too risk-averse, therefore causing underinvestment in risky but positive NPV projects. | ||
Debt financing can help managers use excess cash on non-value adding acquisitions. | ||
All of the above statements are correct |
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