Heavily regulated monopoly companies, such as utilities, often carry high debt loads. Which of the following statements
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Heavily regulated monopoly companies, such as utilities, often carry high debt loads. Which of the following statements about such companies is most accurate?
A. Regulators require them to carry high debt loads.
B. They generate strong and stable cash flows, enabling them to support high levels of debt.
C. They are not very profitable and need to borrow heavily to maintain their plant and equipment.
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B is correct Because such monopolie...View the full answer
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