By Adding Leverage,the Returns on the Firm Are Split Between

question 5

Multiple Choice

By adding leverage,the returns on the firm are split between debt holders and equity holders,but equity holder risk increases because

• A)interest payments can be rolled over.
• B)dividends are paid first.
• C)debt and equity have equal priority.
• D)interest payments have first priority.

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Definitions:

Type Alpha Employees

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Plowshares

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