Companies prefer to maintain some financing flexibility in order to choose the lowest-cost source of funds at a single point in time.
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Q23: Regardless of the particular source of funds
Q24: A firm that does not earn the
Q25: The only difference in the cost of
Q26: Taking on additional debt will reduce the
Q27: Although the after-tax cost of debt is
Q29: Firms in stable industries are advised to
Q30: All firms within particular industries have similar
Q31: Larger bond issues can lower "liquidity risk,"
Q32: A firm should always be at a
Q33: Market values rather than book values should
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