Which of the following statements about homemade leverage is true?
A) Homemade leverage allows you to obtain only the control rights of claims under a better capital structure than currently exists.
B) Homemade leverage allows you to obtain both the cash flow rights and the control rights of claims under a better capital structure than currently exists.
C) Homemade leverage is only possible if you own a majority of the firm's shares.
D) Homemade leverage allows you to obtain only the cash flow rights of claims under a better capital structure than currently exists.
Correct Answer:
Verified
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