Often a large issue of debt is followed by a large amount of equity at the next financing in order to keep the debt-to-equity ratio in an appropriate range.

Name: Often a large issue of debt is followed by a large amount of equity at the next financing in order to keep the debt-to-equity ratio in an appropriate range.
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Quizplus · Accepted Answer

This is true, as companies may need to raise equity to balance out high levels of debt in order to maintain a healthy debt-to-equity ratio.

Often a Large Issue of Debt Is Followed by a Large