A corporation has concluded that its financial risk premium is too high. In order to decrease this,
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Question:
A corporation has concluded that its financial risk premium is too high. In order to decrease this, the firm can
A increase the proportion of longterm debt to decrease the cost of capital.
B increase shortterm debt to decrease the cost of capital.
C decrease the proportion of common stock equity to decrease financial risk.
D increase the proportion of common stock equity to decrease financial risk.
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