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According to the signaling theory of debt, a firm concerned about increasing its stock price should: A. make public inside information about future cash

According to the signaling theory of debt, a firm concerned about increasing its stock price should: A. make public inside information about future cash flows. B. issue equity to signal the undertaking of positive-NPV projects. C. issue debt in order to finance positive-NPV projects. D. decrease the amount of debt employed as the firm becomes more profitable. E. decrease the amount of debt employed as the firm's growth potential increases.

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