Question: An unexpected decrease in net cash inflows may lead management to: A: reduce leverage because the risk of financial distress is too high. B: reduce

An unexpected decrease in net cash inflows may lead management to:

A: reduce leverage because the risk of financial distress is too high.

B: reduce leverage to maintain spare borrowing capacity.

C: issue new shares to reduce the risk of financial distress.

D: All of the above.

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