Question: (d) Increasing the company's financial leverage: Question 32 32. Compared with equity financing, which of the following is a disadvantage of debt financing? (a) Debt

(d) Increasing the company's financial leverage: Question 32 32. Compared with equity financing, which of the following is a disadvantage of debt financing? (a) Debt financing may result in higher corporate income taxes. (b) Debt financing may result in liquidity and solvency problems due to periodic interest payments. c) Debt financing will tikely result in a lower return on equity. (d) Debt friancing may lead to a higher net income

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