All Else Equal, Which of the Following Activities Should Increase

question 66

Multiple Choice

All else equal, which of the following activities should increase the financial risk of a firm?

• A) decrease ordinary share dividends
• B) issue new bonds
• C) issue new ordinary shares
• D) repurchase (pay off) outstanding debt
• E) an increase in the fixed operating costs

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Definitions:

Energy

The capacity to do work or produce change, existing in various forms such as thermal, mechanical, kinetic, and potential energies.

Intrinsically Motivated

Being motivated by internal factors or rewards, such as personal satisfaction or enjoyment of a task, rather than by external incentives.

Curious

Having a strong desire to know or learn something.

Grocery Coupons

Vouchers or codes that provide discounts on grocery items, typically used to promote products or encourage consumer purchases.