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Which one of the following is a logical assumption concerning capital structure weights? A. The weights are constant over time. B. A new bond issue
Which one of the following is a logical assumption concerning capital structure weights?
| A. The weights are constant over time. | |
| B. A new bond issue will reduce the weight of the firm's preferred stock. | |
| C. The redemption of a bond issue will increase the weight of the firm's debt. | |
| D. The issuance of additional shares of common stock will not change the weight of the preferred stock. |
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