Based solely on risk considerations,a mixed debt and equity firm does not have to worry about any financial obligations related to creditors.

Question

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A mixed debt and equity firm does have to worry about financial obligations related to creditors, as debt holders have a legal claim on the firm's assets and may demand repayment of their loans. Therefore, the firm must consider the risk of defaulting on its debt obligations and the impact this would have on the firm's financial position.

Based Solely on Risk Considerations,a Mixed Debt and Equity Firm