By changing the mix of securities a firm uses for financing, the financial manager:

Question

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By changing the mix of securities used for financing, the financial manager is changing the firm's capital structure. This refers to the combination of debt and equity that a company uses to finance its operations and growth. The financial manager can choose to issue more debt, more equity, or a combination of the two, which can affect the company's risk profile, cost of capital, and overall financial health. This decision can have a significant impact on the firm's long-term success and sustainability.

By Changing the Mix of Securities a Firm Uses for Financing