Companies which are investing heavily in fixed assets and acquiring other companies tend to use more debt financing.

Question

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Companies that are investing heavily in fixed assets and acquisitions tend to require more capital, and they may choose to use debt financing to help fund these activities instead of relying solely on equity financing. This is because debt financing can be a cheaper source of capital than equity financing, especially when interest rates are low. However, it is important for companies to carefully manage their debt levels to avoid becoming too heavily leveraged, which could negatively impact their financial stability and creditworthiness.

Companies Which Are Investing Heavily in Fixed Assets and Acquiring