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In a Quarterly Meeting,Antonio,a Financial Manager at InVest Inc

Question 54

Multiple Choice

In a quarterly meeting,Antonio,a financial manager at InVest Inc.states that the company will benefit in the long term by utilizing a mix of debentures than focusing only on issuing shares.He states that this strategy will give his company a positive _____,which will increase the rate of return of the firm.


A) risk-return trade-off
B) leverage
C) hedge fund advantage
D) divestiture

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