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When installing a second hard drive on a computer, which of the following determines the letter assigned to this drive?
Lender's Risk
The risk faced by a lender that the borrower may not repay a loan either in part or in full.
Asset Substitution
A financial strategy where a firm replaces less risky assets with more risky investments, potentially increasing shareholders' wealth but also the risk to lenders.
Debt Covenant
Agreements between a borrower and lender stating specific limitations or conditions about the borrower's actions.
Borrowing Costs
Expenses incurred by an entity for borrowing funds, including interest, amortization of discounts or premiums on debt, and other related costs.
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