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Which of the following statements is (are) correct? A) A large debt obligation limits management's ability to use corporate resources in ways that do not

Which of the following statements is (are) correct? A) A large debt obligation limits management's ability to use corporate resources in ways that do not benefit investors. B) Managers will prefer less debt as it lowers the firms risk of missing interest payments and being forced into liquidation. C) Both A and B are correct. D) None of the above.

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