McqMate
| Q. |
Which of the following statements is correct for an aggressive financing policy for a firm relative to a former conservative policy? |
| A. | the firm will use long-term financing to finance all fixed and current assets. |
| B. | the firm will see an increase in its expected profits. |
| C. | the firm will see a decline in its risk profile. |
| D. | the firm will need to issue additional common stock this period to finance the assets. |
| Answer» B. the firm will see an increase in its expected profits. | |
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