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Why does the marginal benefit of debt fall as the amount of debt rises? A. The greater the debt, the greater the possibility the firm

Why does the marginal benefit of debt fall as the amount of debt rises?

A. The greater the debt, the greater the possibility the firm will run at a loss

B. The greater the debt, the lower the possibility the firm will run at a loss

C. The greater the debt, the lower the debt-to-equity ratio

D. The greater the debt, the greater the equity

E. None of the above

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