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If company earnings reflect a rate of return less than the cost of debt, then more debt ________.

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If company earnings reflect a rate of return less than the cost of debt, then more debt ________.

If company earnings reflect a rate of return less than the cost of debt, then more debt ________.
A) will increase the percentage of dividends available for distribution to the equity owners
B) will lower the percentage of earnings available for distribution to the debt owners
C) will increase the percentage of earnings available for distribution to the equity owners
D) will lower the percentage of earnings available for distribution to the equity owners

Textbook

Financial Management: Core Concepts

Edition: 2^nd

Author: Brooks

Read 120 times

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More solutions for this book are available here

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stranahan Author

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Thank you very much for this. It's really helpful.

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