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. Which of the following statements best describes a firm's financial risk? A) It decreases with an increase in long-term debt B) It increases with

. Which of the following statements best describes a firm's financial risk?

A) It decreases with an increase in long-term debt

B) It increases with an increase in long-term debt

C) It decreases with a decrease in stockholder's equity

D) It is unaffected by long-term debt

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