When a firm decides to lower its debt-to-equity ratio and implement a strategy to sell excess assets and buy back some outstanding debt issues,it is:

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Lowering debt-to-equity ratio and selling excess assets while buying back outstanding debt issues reduces the firm's overall debt burden and exposure to interest rate risk. This is achieved by decreasing the overall amount of debt in the capital structure and potentially obtaining lower interest rates on any remaining debt. This strategy is a form of risk management and is a common practice for firms looking to improve their financial position.

When a Firm Decides to Lower Its Debt-To-Equity Ratio and Implement