Cash flow to creditors must increase when:
A) A firm increases its long-term debt by more than its interest expense in any given year.
B) The cash flow to stockholders is constant and the cash flow from assets increases.
C) The operating cash flow increases and the cash flow to stockholders decreases.
D) The interest rate on the firm's debt decreases.
E) A firm borrows more than it repays in any one given year.
Correct Answer:
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