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If a CFO Wants to Maintain a Targeted Capital Structure

Question 52

Multiple Choice

If a CFO wants to maintain a targeted capital structure, she should


A) repurchase shares when the firm's stock price has increased considerably.
B) issue more equity when the firm's stock price has increased considerably.
C) issue more debt whenever interest rates fall, and retire debt when interest rates rise.
D) both A and B.

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