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Which of the following statements is correct? A. The tax benefit from using debt financing reduces a firm's risk. B. The lower the level of

Which of the following statements is correct?

A. The tax benefit from using debt financing reduces a firm's risk.

B. The lower the level of a firm's debt, the higher the firm's leverage

C. The lower the level of a firm's debt, the higher the firm's equity multiplier

D. The lower the level of a firm's debt, the lower the firm's equity multiplier

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