If a firm believes that it will have sufficient cash flows


If a firm believes that it will have sufficient cash flows to cover interest payments, it may consider using ____ debt and ____ equity, which implies a ____ degree of financial leverage.

a. more; less; lower

b. more; less; higher

c. less; more; higher

d. none of the above

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Financial Management: If a firm believes that it will have sufficient cash flows
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