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If a Firm Chooses to Maintain a Fixed Debt-Equity Ratio,it

Question 76

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If a firm chooses to maintain a fixed debt-equity ratio,it can raise the additional needed funds by:


A) issuing debt, in which case dividends become the balancing item.
B) issuing debt, in which case the amount of debt itself becomes the balancing item.
C) issuing stock, in which case dividends become the balancing item.
D) issuing stock, in which case no balancing item is needed.

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