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Which one of the following is true? Multiple choice A firm with low anticlpated profits will likely take on a high level of debt. Investors
Which one of the following is true?
Multiple choice
A firm with low anticlpated profits will likely take on a high level of debt.
Investors will generally view an increase in leverage as a positive sign of the firm's value.
Rational investors are likely to infer a higher firm value if a firm is allequity financed.
Rational firms raise debt levels when profits are expected to decline.
Highgrowth firms with future positive net present value projects tend to have high levels of
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