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which statement is not true An important consequence of leverage is the risk of bankruptcy. Shareholders expect to receive dividends and the firm is legally
which statement is not true
An important consequence of leverage is the risk of bankruptcy. Shareholders expect to receive dividends and the firm is legally required to pay them A firm that fails to make the required interest or principal payments on debt is in default. In the extreme case, the debt holders take legal ownership of the firm's asset t. hrough a process called bankruptcy. After a firm defaults, debt holders are given certain rights to the assets of the firm Step by Step Solution
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