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Which of the Following Is NOT a Likely Financing Policy

Question 9

Multiple Choice

Which of the following is NOT a likely financing policy for a rapidly growing business?


A) Adopt a modest dividend payout policy that enables the company to finance most of its growth externally.
B) Borrow funds rather than limit growth,thereby limiting growth only as a last resort.
C) Maintain a conservative leverage ratio to ensure continuous access to financial markets.
D) If external financing is necessary,use debt to the point it does not affect financial flexibility.
E) None of the above.

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