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Which one of the following statements is TRUE? To protect themselves from asset switching, creditors will charge a higher interest rate. Firms borrowing money have
Which one of the following statements is TRUE? To protect themselves from asset switching, creditors will charge a higher interest rate. Firms borrowing money have greater flexibility to use that money when there are debt covenants. An example of asset switching is an option to exchange one piece of real estate for another. Lenders can't legally prevent a firm from engaging in asset switching. None of the above
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